u
HANDBOOKS PREPARED UNDER-THE DIRECTION OF THE
HISTORICAL SECTION OF THE FOREIGN OFFICE.— No. 68
MONGOLIA
LONDON :
PUBLISHED BY H.M. STATIONERY OFFICE.
1920
EDITORIAL NOTE
In the spring of 1917 the Foreign. Office, in connexion
with the preparation which they were making for the work
of the Peace Conference, established a special section whose
duty it should be to provide the British Delegates to the
Peace Conference with information in the most convenient
form — geographical, economic, historical, social, religious, and
political — respecting the different countries, districts, islands,
&c, with which they might have to deal. In addition,
volumes were prepared on certain general subjects, mostly
of an historical nature, concerning, which it appeared that a
special study would be useful.
The historical information was compiled by trained writers
on historical subjects, who (in most cases) gave their services
without any remuneration. For the geographical sections
valuable assistance was given by the Intelligence Division
(Naval Staff) of the Admiralty ; and for the economic sections,
by the War Trade Intelligence Department, which had been
established by the Foreign Office. Of the maps accompanying
the series, some were prepared by the above-mentioned depart-
ment of the Admiralty, » ut the bulk of them were the work
of the Geographical Section of the General Staff (Military
Intelligence Division) of the War Office.
Now that the Conference has nearly completed its task,
the Foreign Office, in response to numerous inquiries and
requests, has decided to issue the books for public use,
believing that they will be useful to students of history,
politics, economics, and foreign affairs, to publicists generally
and to business men and travellers. It is hardly necessary
to say that some of the subjects dealt with in the series have
not in fact come under discussion at the Peace Conference ;
but, as the books treating of them contain valuable informa-
tion, it has been thought advisable to include them.
It must be understood that, although the series of volumes
was prepared under the authority, and. is now issued with
the sanction, of the Foreign Office, that Office is not to be
regarded as guaranteeing the accuracy of every statement
which they contain or as identifying itself with all the opinions
expressed in the several volumes ; the books were not prepared
in the Foreign Office itself, but are in the nature of information
provided for the Foreign Office and the British Delegation.
The books are now published, with a few exceptions,
substantially as they were issued for the use of the Delegates.
No attempt has been made to bring them up to date, for, in
the first place, such a process would have entailed a great
loss of time and a prohibitive expense ; and, in the second,
the political and other conditions of a great part of Europe
and of the Nearer and Middle East are still unsettled and in
such a state of flux that any attempt to describe them would
have been incorrect or misleading. The books are therefore
to be taken as describing, in general, ante-bellum conditions,
though in a few cases, where it seemed specially desirable,
the account has been brought down to a later date.
January 1920.
G. W. PROTHERO,
General Editor and formerly
Director of the Historical Section.
Mongolia]
TABLE OF CONTENTS
I. GEOGRAPHY PHYSICAL AND POLITICAL
(1)
(2)
(3)
(4)
(5)
( 6 ).
Position and Frontiers
Mongol-Siberian Frontier
Mongol-Manchurian Frontier .
Southern Frontier .
Southern Border of Outer Mongolia
General Observations
Surface, Lakes, and River System
Surface
(a) North-west Mongolis
(6) Gobi .
Lakes and River System
Climate .
Sanitary Conditions
Race and Language
Race
Language
Population
Distribution .
Towns .
II. POLITICAL HISTORY
Chronological Summary . -
(1) Outline of Early History . .
(2) Inner Mongolia . -
(3) Outer Mongolia ....
(4) Attempts by China to tighten Control. Inter
vention of Russia .
(5) Outer Mongol Princes declare Independence
1911 ......
(6) Russo-Mongol Agreement, 1912 .
(7) Mongol-Tibetan Treaty, 1913 .
(8) Russo-Chinese Declaration, 1913
(9) Russo-Mongol Railway and Telegraph Agree
- ments, 1914 .
(10) Tripartite Treaty of Kiakhta, 1915 .
(11) Russo-Chinese Agreement as to the Bariikh
Country, 1915 ....
Authorities .
Maps ...---
Wt. 9014/849. 1000. 6/20. O.U.P.
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I. GEOGRAPHY PHYSICAL AND
POLITICAL
(1) Position and Frontiers
The vast territory generally known as Mongolia lies
to the north and north-west of China proper, roughly
between latitudes 37° and 54° north and longitudes 83°
and 122° east. It is wholly inland and nowhere ap-
proaches the sea. On the north-west it is bounded by
the Siberian province of Tomsk ; on the north by the
provinces of Yeniseisk, Irkutsk, and Transbaikalia ;
on the east by Manchuria ; on the south by the Chinese
provinces of Chihli, Shansi, Shensi, and Kansu, and
the Chinese colony of Sinkiang or the New Dominion ;
and on the west by Sinkiang and the Siberian pro-
vinces of Semiretchensk and Semipalatinsk. The area
is said to be about 1,367,600 square miles.
Mongol-Siberian Frontier. — The frontier between
Mongolia and Siberia has been the subject of negotia-
tion between the Russian and Chinese Governments at
different times from 1689 to 1915, and as it exists it
is recorded in (1) the Treaty of Kiakhta, 1727 ; (2) the
Treaty of Peking, 1860 ; (3) the Protocol of Chugu-
chak, 1864 ; (4) the Treaty of St. Petersburg, 1881 ;
and (5) the Treaty of Tsitsihar, 1911.
The early demarcations of this frontier for the most
part followed the local divisions recognized by the
nomad Mongols who were subject to the two empires
of Russia and China respectively. Wherever possible
mountains and* rivers were used as boundaries, but
in some cases large plains were divided and marks
erected upon them to show the national divisions.
Prom the Great Altai range in the north-west of the
country, the boundary follows an irregular course
GEOGRAPHY
[No. 68
north-eastwards, crossing the western extremity of
the Tannu-ola range, until the Syansk Mountains are
reached. The line, cutting across the course of the
Yenisei, then follows this range along its whole
length, and after passing the northern end of Lake '.
Kossogol, along the continuation of the same chain
eastwards. It crosses the middle course of the Selenga
(leaving the greater part of the fertile Chikoi valley to
-Russia) and the upper waters of the Onon, ending near
the station called Manchuria on the Siberian Railway.
Mongol-Manchurian Frontier.— -The limits of Mon-
golia on the east, towards Manchuria, though well
~ n own to the Mongols and Chinese locally, are not
derined with precision in any documents or on any
reliable maps. Around the lakes Dalai Nor and
•J ir ?° r dwe11 the Bar "khs, who should be con-
sidered as Mongols, and, if their territory is included
in -Mongolia, the boundary must be in the neighbour-
hood of the Khingan Mountains (a range running
north and south in longitude 117° to 121° east), f
whence it turns .east about 47° north latitude
towards the Nonni river. Hereabouts it turns again
SL? f en ^ al though irregular southerly and south-
westerly direction to the valley of the *Shara-muren,
a branch of the Liao river of South Manchuria,
bnn^ ■ Fr ™per.~The southern and south-western
oTm^T ? f ^ on g° lia > stretching from the confines
KnSS^??*- m J he east to the neighbourhood of j
mUev\l } ? the west ~ a distance of over 3,000 '
SKlW ^fS° ^ ever been Precisely defined. From .
southlnJ o t |h^-muren the line passes over the
^'lil^?? 1,gailran « e and ^ong the rim of
RiverTneirS P* ateau *° the Hwang ho (Yellow
Shans . H er f Tt S tmg £ uku -hoto) in north-west
for a sWt iL oUoWB the H^ang-ho southward
across the 0r dn t^ 6 ' , aad ^nues south-west
Wall tc th Pvtnitv P > al ?T ng ^ line of the Great
a general ZtVZtZrtl V™^' ^ence it takes
land of the western OoW ? lr ff lon °™v the arid table-
ne western Gobi to the oasis of Barkul (about
Mongolia] POSITION AND FRONTIERS 3
43° 30' north, 93° east). In this neighbourhood it
turns westward to the Russian frontier in the Altai
Mountains north of Kuldja (Hi).
Southern Border of Outer Mongolia. — By a Declara-
tion of November 5, 1913, subscribed to by Russia and
China, Outer Mongolia was erected into an autonomous
state in Chinese territory and thereby differentiated
from the remainder of Mongolia. The Declaration
temporarily evaded the difficulties caused by the absence
of any properly delimited boundaries by defining
Outer 'Mongolia as the territory formerly under the
jurisdiction of the Chinese Ambans at Urga, Uliasutai,
and Kobdo. In the tripartite Treaty of Kiakhta,
June 7, 1915, provision was made for a formal delimita-
tion of Outer Mongolia within two years from that date.
General Observations. — Along the east and south-east
frontier, bordering on Manchuria and the provinces
of Chihli and Shansi, the colonization of Inner Mongol
territories by the Chinese has been steadily in progress
for a century. Wherever this has taken place, the
jurisdiction of the Chinese settlers has passed to
Chinese officials, the Mongol princes ruling their own
people only and gradually losing all territorial authority.
This has been especially the case in West Manchuria
(Taonanfu) and Outer Chihli (Chengtehfu). For this
reason no demarcation of boundaries between Chinese
and Mongol territory would hold good for more than
a short period.
The existing frontiers of these regions may be said
to be ethnical, and mark the general limits of the nomad
Mongols and their grazing-grounds. On the south-west,
west, and north-west of Mongolia the barriers are
ranges of mountains, and may be regarded as geo-
graphical frontiers. On the north, from the Syansk
chain right away to the Argun river, the boundary is
a political' one, carried nearly two centuries ago
through territories sparsely populated by nomads,
with no special regard to physical features. The main
principle in the demarcation appears to have been
a division of the tribes into those who had been brought
B 2
GEOGRAPHY
[No. 68
into contact with, or had acknowledged, Russian
dominion, and those who had not.
On the east and south-east, towards Manchuria and
China proper, there is a boundary question which has
arisen from the inroads of Chinese settlers. To avoid
acute disputes in future it would seem \ desirable to
delimit the whole of these sections of the Inner Mongol
frontier in the same way as the north frontier of Outer
Mongolia has been demarcated. There are no accurate
surveys of these regions, and until such are available
no practical suggestions can be offered.
There is a possibility of a rather similar question
arising in connexion with the Urianghai country lying
between the Syansk and Tannu-ola Mountains, as
a number of Russian settlers have penetrated this
district, and Russian jurisdiction is being exercised
over them. It has been suggested by Russia that
the Chinese were in error in setting their boundary
at the Syansk range, and that the real frontier is the
Tannu-ola, along which a line of cairns is said to.be
still discernible. Article I of the Protocol of Chugu-
chak (1864) seems to make it quite clear that the
5r anSl ! ridge is the P ro P er limit , and in any case, if
there has been a mistake, a reference to the map
attached to the Protocol, which was prepared in
quadruple but has not been published, should settle
all doubts.
(2) Surface, Lakes, and River System
Surface
Mongolia consists almost entirely of an immense
upland which has been divided by geographers into
two mam regions North-west Mongolia Ind the Gobi.
wi?l5° A W6St . Mon 9°}™ ^ general is a mountainous
The tW fnV e ^° n l W ^ Ch may be ^tiered under
the three following headings : (1) Urianghai • (2^ the
lake region ; (3) Tarbagatai and the St vallev
Unanghai, the mountain-girt northern division
occupies the upper Yenisei ba'sin, and i waW by
Mongolia] FRONTIERS; SURFACE 5
its tributaries of the Kemchik and Ulu Kern. The
floor of the basin at its lowest is 1,700 ft. (500 metres)
above sea-level, but it is hilly throughout, and the beds
of the rivers probably have an average height of 3,00C • it.
(900 metres). The border range on the north, the
Syansk, encloses about half the basin ; the Tannu-ola
the rest. Neither range is lofty, the summits only m
a few instances rising higher than 7,000 or 8,000 ft.
(2,100 to 2,400 metres). -
The middle, or lake region, extends from the lannu-
ola south-westwards to the Mongolian Altai (Jigtagh)
south of Kobdo. It is composed of a succession ol
lake basins, which vary in altitude from that of U bs a
Nor (2,400 ft., 730 metres) and Kirghis Nor ■{j,™ "•»
-820 metres) to that of Kara-ussu Nor (3,800 it., Mt>u
metres) and Urin Nor (4,800 ft., 1,460 metres), divided
bv irregular ridges which rise about 2,000 it. (buu
metres) above the general level. The Altai is a true
border-range, mounting in a steep escarpment irom
the Dzungarian depression. In the west its summits
tower above the snow-line; in the east they barely
touch it. In the Sailughem Mountains, the backbone
of the Altai region, which bound both the lake region
and Urianghai on the west, the snow-line runs at
6,700 ft. (2,000 metres) on the north versant and
7,800 ft. (2,400 metres) on the south, and the peaKs
rise 3,000 or 4,000 ft., (900 or 1,200 metres) higher still.
Tarbagatai (Ghuguchak), the extreme south-west pro-
jection of this part of the country, is hilly, but contains
the most low-lying part of the Dzungarian depression
in the Emil valley? The elevation at Telli Nor is 950 ft.
(290 metres), and atUlungur Nor 1,500 ft. (450 metres)
while the valley of the Urungu drams the .south ^flanks
of the middle Altai at an altitude of 1,500-2,000 it.
(450-600 metres). The Urungu valley is the north-
eastern part of the Dzungarian depression, which lies
between the Altai and the T'ien Shan (Celestial Moun-
^Urianghai is a forest country, and when the forests
fail there are meadows covered with excellent pasture.
GEOGRAPHY'
D
No. 68
The forests decrease as one goes south, and the Tannu-
■ ola appears to be their limit. For the rest, the greater
part of North-west Mongolia is dry prairie covered with
gravel.
(6) Gobi.— The so-called Gobi terrace may be divided
conveniently into (1) Outer Mongolia, (2) the Gobi
proper, (3) Inner Mongolia.
Outer Mongolia is a wide zone on the northern slope
ol the Mongolian plateau, and comprises the country
between the Khanghai Mountains on the west, the
Kiimgan range on the east, the Russian frontier on
the north, and the Gobi proper on the south. It
includes the basins of the upper Selanga, of the upper
Onon (a branch of the Shilka, the Siberian constituent
ol the Amur), and of the Kerulon. The highest eleva-
tions are found to the south of the region, just before
the Gobi depression is reached ; and to the north the
n RnnI gr ^ Ually descend s towards the Baikal Lake
i - + i ' °° metres ) a nd the Amur valley.
in the north the surface is diversified. The more
S 1 mountains are everywhere wooded, and the
river basins possess good pasture, but when the foot-
Xf 6 r . eached * he vegetation is scanty, especially
oftS\ r ? gl ° n n ° rth ° f the Kerulon - The soil is poor,
lT'r eXCept alon S the ri ™> but near the
ll it fr ° n if r ™ n ? of ^e valleys are very fertile.
weathetdThv n° Ut ! r M ° n S olia the surfac ^ is - more
S? ?1?' M1S and ran § es have lo ™ and broader
Jl™. 18 an en ^e absence of trees, and the
Mongol pnurie merges into the almost barren Gobi.
detvLt^lJTZ c ° m P rises the ^eper part of the
STCSS 1 + theil \ terior of the lower terrace of
of counZ ™ P i ate f u ' and c °vers an immense stretch
MoSa 7 m , U p ch p of + w ^ch lies beyond the limits of
we fre he J ,n Gntra i and Ea ^ Gobi, with which
Kansu north ppT'TH 6J ? end fr ° m Sinkian S and
Nor aXoxiZtr if ^ the nei g hb ^hood of Buir
T v a p n p d ^^^^ T f. and 47 °
of gravel, sand , and rock ^IX^g^
Mongolia!
SURFACE
broad-capped ranges and detached hills, which are
much denuded and disintegrated. The altitude varies
from 3,000 ft. (900 metres) on the east to 5,00U it.
(1,500 metres) on the south and west.
The Gobi is crossed in many directions by the caravan
routes between China on the south-east and Outer
Mongolia, Sinkiang, and North-west Mongolia ;. but
there appears to be no part of it which is capable ol
permanent settlement. There are no rivers ; the laKes
are few and small, and for the most part brackish ;
and water is everywhere lacking except during the
short rainv Season. ■ , -u ■*. inn l? , \
Inner Mongolia extends from Kansu (about 10U i,.j
to Manchuria (about 122° E.), an^ from the Chinese
provinces of Shensi, Shansi, and Chihh north-westwards
to the Gobi. The surface is extremely diversified. In
Alashan, which fills the space between the great bend ol
the Hwang-ho (Yellow River) and the Edsm Gol valley,
the country is level, with a general altitude of 3,300 to
5,000 ft. (1,000 to 1,500 metres): for hundreds ol
miles there is nothing to be -seen but bar .e, sa ™ s '
which are waterless, alternating either with saline
clays, or,, nearer the mountains, with barren shingle
Alashan is separated from Kansu by the eastern part
of the Nan Shan Mountains, a narrow range with an
average altitude of 10,500 to 11,000 ft. (3,200 to 3,500
^The'ordos region lies east of Alashan, within .the
loop of the Hwtng-ho. It is, for the most part a
level steppe partly bordered by low hills. The soil
is altogether sandy or a mixture of clay and and
ill 'adapted for agriculture. The absolute height ^o this
country is between 3,000 and 3,500 ft. (900 , and £060
metres), so that Ordos forms an intermediate step _ m
the descent towards China. The northern part of the
loop is filled with a succession of sand-dunes. ■
North of the Ordos, .beyond the Hwang-ho there,
is a succession of mountain ranges, including theln.
shan, which connect eastward with the Khmgan Moun-
tains. These mountains have well-watered valleys and
8
GEOGRAPHY
[No,
f ^ nt f Ve if et ^' Alon g the Hwang-ho there is
tivfS? 1° n^ Vlal land ' thickl y Populated and cul-
tivated by Chinese settlers.
hnr^ e nl - Untry ° f the ' F °rty-nine Banners ' which
f fl r«t ^ c pr ° per from the Hwang-ho bend as
betwLi % JS*" 5 ? ° f Ma nchuria, the altitude varies
witW» t '-• and 5 > 400 f t- (660 and 1,600 metres),
East S^ 8 Tm * g I?? 00 ft ( 600 metres ) ^ove this level.
SSl ^ 6 T m Khln S an ^e descent is comparatively
bourhnnJ OUg ^ *£ &hru ^' to the Taonanfu neigh-
(300 ^tlT T 6 * T he avera S e altitude is ™a™ 1^00 ft.
ST , + i n J? nev Mon golia generally small lakes
rthe m Tr % n 1 th f de P^ssions, though the water
oHW-Rni ene " a1 ^ Salt or b rackish. The greater part
and mnoh ST • Ba ^ erS ' Countr y is fair S^mg land,
as onT?nl ** V mte suitable *» agriculture, but
to the £v "° rth fr ,° m ° uter Chihli the «oil is similar
the dry prame of north and west Mongolia.
Lakes and River System
-riv^nT? a L^°T Ha ? ab ^dantly supplied with
upper tribuwfp f U + l la ^ hai oc ^ P ies the basin of the
anTthe ' Dlu Kern \ J?T> l™™ as the Kemchik
junction of theBpfTTo ^f bein § for med by the
of this basin Lv!T and the Khua Kern. The area
the east of Tt hell? abou * 6 i>000 square miles, and to
lake, at an mZfZl^^T^ * ^ ^SJT
region are mostlv lii , The lakes m the middle
outlet to thHceL T^ *™ ckish >' and possess no
(altitude 2,400 ft „; 7<fn ^ of these is Ubsa Nor
Part of a large n'fain ? j netre ?)' -Occupying the lowest
giver Tess. FartS'so^" 606 ^ fro ™ the east the
Nor (2,700 ft , or 820 ^ "? ^ Sister lakes Eir S Ws
receive another large rf^T* L*°i A J7 k Nor ' which
Kungui. Near Kobclo 3 t h l Za P kb yn, and Lake
nver, rising in the Altai Si £ tW south > tbe Kobdo
or 1,160 mitres) Xh'i^K^a-ussu Nor (3,800 ft.,
large lake, T>w£^^^^^ed with another
»* snort distance to the east. In
Monona] LAKES AND RIVER SYSTEM 9
the third division of North-west Mongolia, south of
the Egtagh (Mongolian Altai), is the Black Irtish, which
drains the north frontier ; while the Urungu waters
the more arid region bordering on Sinkiang and enters
Ulungur Nor near Buluntokhoi. The Emil, which flows
west into LakeAlakul, is the river of west Tarbagatai.
The principal river of Outer Mongolia is the Selenga,
which has many tributaries, the chief of them being
the Orkhon and the Tola, the Kerulon, and the Onon.
The basin of the Selenga extends from Uliasutai to
Urga over the whole northern part of the Tushetu and
Sainnoin territories. Both this river and the Orkhon
flow north-eastwards as far as their confluence on the
Siberian frontier, and the Selenga is navigable from
this point down to Lake Baikal, some 200 miles,
steamers plying during part of the year to Selenginsk.
The Tola, Kerulon, and Onon all rise in the Kentai
group. The Tola flows south-west past Urga, and
afterwards northwards into the Orkhon, which is
450 miles long, and joins the Selenga a few miles
south-west of Kiakhta. The valley of the Kerulon
forms a great natural highway across the Tsetsen
khanate of Outer Mongolia, stretching eastwards into
the Barukh country. Along a considerable portion
of the lower reaches it is unfordable, and there are
no boats, except at the ferries. The Onon and the
Chikoi, another tributary of the Selenga, water fertile
valleys on the Siberian frontier.
In the trans-Khingan portion of Inner Mongolia
there are few rivers of any importance, but of the many
lakes Dalai Nor is the largest. It is about 40 miles
round, and has an altitude of 4,200 ft. (1,280 metres).
It is generally shallow, and the ice on the lake does
not thaw until the end of April. Its waters are clear,
though impregnated with soda, and there are no boats
on it.
On the western slopes of the Khingan a number of
small streams and rivulets exist as far north as the
Khalkha Gol, which is a considerable river emptying
into the Buir Nor. In general, it may be said that in
10
GEOGRAPHY
[iTo. 68
South-east Mongolia streams are by no means infre-
quent, and grass grows more or less abundantly : but
west of the route from Kalgar to Urga there is great
dearth of water owing to the small precipitation. The
-tlwang-ho m its curved course around the Ordos
plateau is not subject to inundations, and flows between
low level banks through a populous and well-cultivated
valley 20 to 40 miles broad. It is unfordable in any
part, is much used by large boats, and could easily
De navigated by river steamers. The rate of the'
current is nearly 3| miles an hour, and the voyage
irom Taotowchen up-stream to Ningsiafu may take
over a month. In Alashan there are salt lakes here
ana there, Charatai-Dabasu being 33 miles round, and
encrusted with a layer of fine salt, 2 to 6 ft. thick.
(3) Climate
wdi ar if Part ° f Mon g oli a is occupied by the Gobi,
wnicn, however, except in its rainless central region, is
rather a steppe than a desert.
TiortW? !f nCe J, n mean temperature between the '
amnmf+? an + southern confines is marked, the range
jSiXv g ?'- M mUch as 35 ° F - ** the month of
January, and averaging 19° F. throughout the year.
Long. 80°-120° E.
(Mean Temperature, Fahrenheit, reduced to sea-level.)
North Mongolia -J Yo ^T 4 %' ' May - ^ ™V- Aug. Sept. Oct. Nov. Dec.
So ^h ,? 3 l J° f 40 60 70 75 70 60 45 25 10
*~* 35 2 3 0° 1 J ™ g « - JO g »
iSrnrS 1 *e year, October to April,
ayrtim^E^/ the + centre °f the high-pressure
1^-wS^SJ I contment al Asia. In May the
tio S n, P and in'St T h f S m °I ed in a northerly direc-
in ]^^ £%'££*>** ^ b -meter
be iromfJooTtot^^t ^^ stated t0
temperature is 27° v £ '\ T? ere the mean annual
is n 5 F., and the mean for January
35
25
Mongdia] CLIMATE; HEALTH ; RACE H
- 16° F., an abnormal range of temperature is recorded,
an absolute minimum of - 45° F. having been reached
in January and an absolute maximum of 101 F. in
June. p
The average rainfall at Urga, which is typical oi ■
that of northern Mongolia generally, amounts to less
than 8 in. Of the total precipitation, 3 per cent,
occurs in the winter, 8 per cent, in the spring, 79.per
cent, in the summer, and 10 per cent, in the autumn.
The total number of days of precipitation m the year
is 44, the wettest month, July, averaging less than
ten days. -111.1
With regard to air circulation, it is found that calms
predominate at Urga, 41 per cent, of the total observa-
tions of the year recording calms, 17 per cent, winds
from the north-west, 14 per cent, winds from the west,
and 13 per cent, winds from the east. Westerly winds
predominate in every month of the year.
(4) Sanitary Conditions
The hardy open-air life which is led by the entire
population keeps the people as a rule free from epidemic
diseases, in spite of their extremely unclean personal
habits. The commonest illnesses are rheumatism and
syphilis. There is little malaria, and the traveller who
avoids sleeping in the native tents has nothing to tear
on the score of health in any part of Mongolia.
(5) Race and Language
Bace
The inhabitants of MongoUa consist in the main of
various tribes of Mongols. In the far east, on the
borders of Manchuria, there are a few Tungus tribes
in the north-west there are Turkis, Manchus, and
Chinese; in Inner Mongolia Chinese settlers abound;
but over nine-tenths of the Mongol territory there is
no population other than pure Mongol.
The race is divided by the Chinese into two great
12
GEOGRAPHY
[So.
tewrt M ™Z° h < W , ai Meng-ku) and Inner
KnafkhL^t 1 Meng-ku). Th'e former include the
Moniolf' h^r 1 ^ 8 < Eleu ths, Oelots) or West
" SA £ ^e Unanghai : the latter comprise the
fonntr-v . + l ^W™ banners ' inhabiting the
cttprn and east of the Gobi which adjoins
formed off 1 and Manc h»ria. The Khalkha nation is
S fl lr great tribes ' the Tsetsen > Tushetu, ITzas-
oTif mn !!r' Wh ° occu Py ^e whole of northern
^%^E^T?i eeebwaxd to the Khingan
west Mn™S lla ™ k tribes are scattered in North-
The UrtS a ' A , a / han ' Kok onor, and Inner Mongolia.
«£^ est dwellers ') «* *-* - *»•
niK S"^ b ° dies of nomads wh ich are
Inner KJl by the Chinese among the Outer and
KiSSrt the Chah ars\nd the Barukhs
Kalgan Th , fe^ 1 eute nant-Governor residing at
as HJunl^i" ^ country, known to the Chinese
■^WBeTS^^V" a b0rderland wed S ed in
Mongolia Stwm v I ArgUn river ' and 0uter
by a Governor of +t Ukh8 haVe since I91 5 been ruled
Government ° Wn ' a PP oi nted by the Chinese
a c?SrabK^ Russian territory
KalmukfTn nu X, er n ° f F*^ ° f Mon S o1 race '
Semipalatinsk and Z "" J° Und in Semirttchensk,
<* Tomsk, and^W t , Ut + hGm , part of the P rovillce
Volga. ' From the V ■ B ^ xm far to the west on the
turned i n their mi^Ztolt* * R™^ they
steppe of the KirghS Z3 1 ?° rth ' crossed the
Emba and the Or TW thu f g rad ^al] v reached the
Ural the Torgod [[iurtn^t^ two rivers and the
crossed the foli £T* ^^1616 ; thence they
now so-called steppe of th/£ i °°\ Passion of the
m 1673 by the SSbet TT? ^f^ 8 ' bein S ^owed
iJerbet [Turbet] and i n 1675 by the
Mongolia!
RACE AND LANGUAGE
13
Koshod [Khoshoit]. In 1771 a considerable number
returned to the Chinese Empire.' x
The Buriats, of which there are 200,000 or 300,000
in Transbaikalia and the country around Lake Baikal,
are Khalkhas who went to these parts towards the
end of the seventeenth century. Unlike the Mongols
and Kalmuks, who continue to live as nomads, the
Buriats are farmers.
Language
The Mongol language is one of .the great famiby
which has of late years been named the Ural-Altaic,
including the Finno-Ugrian, Turkish, Manchu, and
Samoyede. There are three main dialects, East Mongol
or Khalkha, West Mongol or Kalmuk, and Buriat
but the difference between them is so sliglnVtnat
whoever understands one understands them all. mere
is a small difference between the Mongol script proper
and the Kalmuk, the latter being the later invention
and more practical. The written language is quite
distinct from the colloquial.
(6) Population
Distribution
No census of Mongolia has ever been taken, and the
accounts which have been .Pushed estimate the
population at two to five millions. Either of these
numbers is small for an area of over 1,300 000 square
miles The population is densest m the north and west
along the Siberian frontier, and in the east and south-
east close to Manchuria and China proper. In the
centre, south, and south-west there are scarcely any
inhabitants. • ,.,, ,
The Mongols, with few exceptions, are still nomads ;
and the tents are pitched to suit the pasturage of the
flocks. ...
i Encyclopaedia Btitannica, 11th ed., xvin. 720.
14
GEOGBAPHY
Towns
[Mo. 68
oithl%}» ^ a P ltal T of P uter Mongolia, lies on a branch
DaltTTu U *? the resid ence of the Cheptsun
temX.1 ,n khtU ' , the Lamaist P °P e and now a
thTK U 7 6 l gn al ^°' and the reli g io ™ ^ntre of
40 00?n w a Tlhe !i- J he inh abitants\ U mber about
tions '^ v m fl a ^ are Lama monks - The habita-
a TadW J % ^ tents ^s). Maimaichen is
border 1Q0 ™T ad J 01nin S Kiakhta on the Siberian
3 rL? « ^ ° f Urga ; the habitants are
Se^nd f- f S + amb fise * the seat of a Mongol
Kobdo lerl T Tt l° r Chinese traders ' Uliasutai and
governorTi,^ P ^ ta ^ aS the residences of official
on&uTtolfr the , Manclms > and no doubt they
KhutukhttT Pb S ° Tt* the new rule of the Urga
£ ^Ske KiakS 1 ^ 11011 ?' ° n the extreme ™t frontier,
Dolo n NoWT' ^ G ^ trep6t for Siberian trade,
territory is a ( £ amamiao )> though in Inner Mongolian
Paotowchen ^ t0Wn ' as are also Taonanfu and
Mongolia"!
II. POLITICAL HISTOKY
[This Section is intended to be read in conjunction with China,
No. 67 of this series.]
Chronological Summary
1227. Death of Jenghiz Khan.
1368. End of the Mongol dynasty in China.
1644. Submission of Mongol tribes to the Manchu Emperor.
1757. Final conquest of West Mongolia by Ch'ien-lung.
1911. Outer Mongol princes ask for Russian protection (July)
and declare independence (November). .
1912. Mongols seize Hailar (January 15), Uliasutai (January 28),
Kobdo (August 7), and Taonanfu (August 15).
1912. Taonanfu retaken by the Chinese.
1912. Agreement of Urga (October 12) between Russia and the
Mongols.
1913. Russo-Chinese Declaration (November 5).
1914. Railway and Telegraph Agreements between Russia and
Outer Mongolia (September 30).
1915. Treaty of Kiakhta, between Russia, China, and Outer
Mongolia (June 7). -on, +
1915. Russo-Chinese Agreement as to the Barukn country
(November 26).
(1) Outline of Early History
We know little of Mongolia before the time of Jenghiz
Khan, who died in a. d. 1227. Originally a minor nomad
chief of the Kerulon valley, in the course of his lifetime
his dominion was extended until it covered most of
High Asia westward from the China Sea. His son
Ogotai and his grand-nephews Mangu, Hulagu, and
Kublai continued to conquer territories west and south,
and on the deathof the last (in 1294) the Mongol Empire
was probably the most extensive known in history.
But through the incompetence of Kublai's successors
it declined as rapidly as it rose, and the Mongol dynasty
came to an end in China, the principal seat of Mongol
power, in 1368. Toghon Timur, the last Mongol occu-
pant of the throne of China, was followed by a number
16
HISTORY
[iTo. 68.
tL^i T h ° exeroise d an overlordship in the
territory now known as Mongolia,' but by the first half
arJn^ri 61 ? 661 ? 11 Centur ^ the Mon gol tribes had
TcZnllV c ° nesion and had established, scattered
sZH^r nnd f aS man y chiefs all over the country.
i boX« t S \ Wl \° Se lands were close to- the Chinese
borders, submitted to the Manchu Emperors within
Kh JkL + ? f **"> downfall of the Mings (1644); the
exa^l * T 8 Wh ° Were more remote followed their
who^tL ln n he mgn of K 'ang-hsi (1661-1721), by
final J^ D ?TS? Were defea * ed i an d in 175 ? the
Ch Wlung We8t Mon S° lia was accomplished by
(2) Inner Mongolia
and* on't^ 1 l^ ^T *" 1 Em P ire in 1»H this vast
d^Jhhr°n\- nhoS P itable re g ion was roughly
d vsTons W* G ^ into two great administrative
Subsist T ^ ,? Uter Mon golia. These divisions
the jot;- ^i&^ % h ° kn °r § eneraii 7 as
the north frontier oi fffl'™ * Banners '> ^tends along
churia and SIT ?• hma P ro Per from Kansu to Man-
Khil e l Chm § no / tn - east on b °th sides of the
forty^^?^ Manphnria on the west. The
descended from t L **"> Inner Mon S ols are directl y
Khans, which wJ ^g^ation of the Jenghizide
the expulsTon nf T^ ^ their descendants after
China? A D Tse^ ^Mongol (Yuan) dynasty from
which embrace tL /CT are dl 7 ided into six leagues,
The Inner SJll W }°} e ° f the twenty-four tribes.
the Manchu d™^ ^ been dosel y linked with
territory had W J ' i" 1 ^ lar g e Portions 'of their
'■ ' ■ ( 3 ) °uter Mongolia
front^&ooo^tJ? 6 ^ ad 3 oi nmg the Siberian
It is inhabited by Skh?^ ^^ to Turkestan.
Mongolial
OUTER MONGOLIA
17
Three of the four great divisions of the Khalkhas —
Tsetsen, Tushetu, Dzassaktu, and Sainnoin — are
governed by rulers bearing the old title of Khan —
Tushetu Khan, Tsetsen Khan, and Dzassaktu Khan —
and there are 86 ' banners ' in the whole Khalkha
nation. The principal centre of Chinese authority as
exercised on the Khalkhas was at Uliasutai, a town in
the Sainnoin territory, where a Military Governor was
stationed. He was assisted by Khalkha princes from
the four tribal divisions, each of whom took turns
of residence for three months at Uliasutai. Urga,
a town in the Tushetu country, is the adminis-
trative centre of the Tushetu and Tsetsen khanates,
and the seat of the Cheptsun Dampa Khutukhtu, the
Lamaist Pope of Mongolia, through whose spiritual
influence Chinese authority over the Khalkha chiefs
was largely maintained. To ensure this, an Imperial
Agent or Amban was stationed at Urga, with co-
ordinate authority in matters relating to the Mongols
and special control of the frontier trade at Kiakhta.
The organization of the Kalmuks suffered from the
wars of the eighteenth century with Tibet and China,
and the tribes are much scattered. Most of them
inhabit North-west Mongolia ; a large body live in the
Kokonor region and on the north border of Tibet ; and
another large section, the Alashan Mongols, are found
in Kansu and along the western bend of the Hwang-
ho. The Urianghai and West Mongol tribes were
placed under the Military Assistant-Governor at Kobdo,
subject to the authority of Uliasutai ; and a Comp-
troller-General at Siningfu (Kansu) supervised the
Mongols and Tanguts of Kokonor and the Tibetan
border.
(4) Attempts by China to tighten Control. Intervention
of Russia
The steps taken by the Peking Government in the
blosing years of Kuang-hsii (1875-1908) to reduce the
Mongolias more to the status of Chinese provinces
c
20
HISTORY
[»o. 68
P }Tu P ^ entia P es dul y authorized by the Sovereign
ol the Mongol people, by the Mongol Government, and
py the governing princes '. The preamble stated that
ioiiowmg a unanimous desire of the Mongols to main-
tain the national and historic constitution of their
rM- Yi Chinese troops and authorities were
oDiiged to evacuate Mongol territory and the Cheptsun
ympa Khutukhtu was proclaimed Sovereign of the
Mongol people. The ancient relations between Mon-
golia and China thus came to an end.' The Russian
government undertook to assist Mongolia to preserve
the autonomy thus established and also the right to
E* national army, and to forbid the presence of
W*T ? PS or ° ol °nization by Chinese on Mongol
el*W Q T a Protoco1 annexed to this agreement
rnihS 6 arran S eme nts were made giving Russian
'duS + C ° mplete 1 libert y of trade ^ Mongolia free of
duties, taxes, or other dues', and other special privileges.
(7) Mongol-Tibetan Treaty, 1913
MotdwTM ^ 1 .^ 111 ^ was immediately
coSded 7 a f ^ 0n g°[- Tibetan Treat y of fiance, also
Sa and ofV?V b 7 re P^entatives of the Dalai
jS^i^^^^te (December 29, 1912/
important ; B • 7' whlch ' though of no political
iStive m \l mter f + stin g f ^m the fact that the
the T b'tan ^H ""S* is Said to have come from
Urga Governnw-, ^ readiness Splayed by the
waf expEnt^V 00 ^^ Dalai Lama ' s P r °P° sal
nificanc? atTaehS toth?h? T? ^ * S ^
of the Supreme R P 2 ^benediction and approbation
Khutukhtu who 5n ^ thG Lamai «tic Church To the
a proposaTtf c ° 01 Sg^* the "P^ hierarchy,
could not but iSfi^ 88 "™' ° n ^ temS
and Tibet had t^S*** asserted tha * MongoHa
dominion and hid t emSel T from *he MaSchu
that the new alliance ™T mde P. e ndent states, and
alliance was f orm ed i n view of the ' com .
Mongolia] RUSSO-CHINESE DECLARATION, 1913 21
munity of religion. Each state recognized the other's
independence, and both agreed to work together for
the advancement of Buddhism, and engaged to assist
each other against external and internal dangers.
(8) Russo-Chinese Declaration, 1913
The Russo-Mongol agreement was an unpleasant
surprise to the Chinese. It was also apparent to the
Powers that such a recognition of Mongolian inde-
pendence would create a political situation which
was not contemplated when they pledged themselves
to maintain the integrity of the Chinese Empire.
There was a widespread feeling, fostered by the Chinese
press, that the Republic should take up the challenge,
and there was some talk of sending a force to Urga.
Instead, discussions took place with the Russian
Government, which resulted in a declaration and
exchange of notes at Peking on November 5, 1913.
In the declaration Russia recognized the suzerainty of
China over Outer Mongolia, and China on her side
recognized the autonomy of Outer Mongolia. China
was allowed to station a ' Chinese. Dignitary with staff
and escort ' at Urga, and to send agents in case of need
to other localities : at the same time she undertook
not to interfere in the internal administration of Outer
Mongolia, not to send troops or maintain any other
civil or military officials there, and to abstain from all
colonization. Russia, on the other hand, undertook
not to interfere in any part of the administration, not
to maintain troops other than consular guards in the
country, and to refrain from colonizing it. China
declared herself ready to accept the good offices of
Russia to establish her relations with Outer Mongolia
in conformity with the principles above stated, and
with the terms of the Urga Agreement of 1912. In the
notes exchanged, Russia recognized that Outer Mongolia
' formed part of the territory of China '. Autonomous
Outer Mongolia was defined to include the regions
which had been under the jurisdiction of the Urga
22
HISTORY
[ffo. 68
K^bdo A^L Mlhtar ? ?° Vernor at Uliasu tai, and the
Political ^ ?V ^-^ ™ ranged that 'so far as
Chinese On temt orial questions are concerned the
RuS ^ ernment T 11 act in agreement with the
^Sti^TnT^l hy ne go^ations in which the
-authorities of Outer Mongolia will take part '.
(9) Russo-Mongol Railway and Telegraph Agreements,
defcribed^ 6 arran ^ me nts of 1912 and 1913 above
concluded be J ^ d teIe graph agreements were
' recosmVerl +L ■ I* "? , ra uVay agreement Russia
-ilwa^rL theirtwn° f , tlie -? U ^ M °^° ls t0 C ° nstrUCt
should they desheT, rr f° ry : at the same time
person they must fi^^ V™ 06 ™ to a P rivate
tance be requS Vn K, -i T^ 1 * Russia ' should assis '
and the two S UlM raiIwa ys Russia will give it ;
of tlJ Stevl j ° in% dlSCUSS th6 Vl S
countries. ay be necessary to serve both
The ri!l °l T y mite Tr ^V of KiakUa, 1915
established bv tlT*™ °l° uter Mongolia, as it was
VtheSso-CW? USSO ; Mon S o1 U ^ga Agreement and
™ conSated T mstruments <* November 5, 1913,
KiakhtaonJun e7 %% * ri P artite treaty signed at.
°hina, and Outer m % re P re sentatives of Russia,
document covers tL^T^', , This comprehensive
relations wi?h the <L h °- e ^ d of the 0u ter Mongol
with other cmintrier e n ai ?' S ina ' with R ™, and
1913 declaraSontnd tl, UtGr Mon § olia recognized the
and China ol Their aSf SUZerai ^ «f Chin! ; Russia
Outer Mongolia ThpW + reCOgmzed the autonomy of
th « right to condude ^^f ^ declared not to possess
concerning political or ♦ ^ T th forei gn Powers
conceded thVrS to * er f ri questions > »** ™
and industry, fhe Kh^?^ treaties of commerce
. y -Lne Khan of Outer Mongolia received
r
Mongolia] RUSSO-CHINESE AGREEMENT, 1915 23
his title from China ; the Chinese representative
dignitary was given the place of honour on ceremonial
occasions ; and the Chinese calendar was to be em-
ployed by Outer Mongolia in official documents. The
Chinese in Outer Mongolia were placed under Chinese
jurisdiction, and the Chinese dignitaries were expressly
empowered to protect suzerain rights and interests.
The escorts of the Chinese dignitaries at Urga, Uliasutai,
Kobdo, and Kiakhta ; the Russian consular escorts ;
duties on trade ; jurisdiction and procedure in mixed
cases ; telegraphs and posts ; residences of Chinese
dignitaries, were all arranged for in detail ; and pro-
vision was made for a formal delimitation of the limits
of Outer Mongolia as laid down in the Peking notes of
November 5, 1913, within two years from the date of
the tripartite treaty.
'(11) Russo-Chinese Agreement as to the Barukh
Country, 1915
Another arrangement was concluded on November26,
1915, between Russia and China 'on the subject of the
Houlounbouir situation'. The Barukh country (Hulun-
buir), to which this refers, contains two important
stations on the Trans-Siberian Railway, Hailar and
Manchuria ; these stations were opened to foreign trade
by the Sino-Japanese Additional Agreement signed at
Peking on December 22, 1905. It appears that the
Bartikhs declared themselves independent in the early
part of 1912. Article I of the new arrangement makes
Hulun-buir ' a district under the control of the central
government of the Chinese Republic '. The Governor
(Fu-tu-t'ung) is appointed by the President and enjoys
the powers of a provincial governor. China is entitled
to send troops thither ' in case of disorder ' on giving
notice beforehand to Russia, and the troops must be
retired when order is restored. All taxes, except the
customs and salt gabeUe (which revert to China), are
to be devoted to local needs. Chinese and Bartikhs
are on a footing of equality in the country, but the
X
24
HISTORY
pertv nil {& W he nomad s y stGm ) ^ common pro-
than J i Wl J° le people ' no ChJnese ^n acquire more
required I ^ * faed term ' ^uld capital be
first nlli/ ailWa 7 S ' the Cllinese Government is in the
Sese ll apP t y *° Eussia > and branches of the
bemadPwtl + ? KaiIwa ^ (Trans-Siberian) can only
reCd 3 t *? 6 C ° nSent of China > ^ich will not be
San ff eX + * SpedaI reason - The effect of this
3fnl7 a V n Place the Ba ^ country in a
AUTHORITIES
See China, No. 67, and JW,™, No. 69, of this series.
Maps
on the scale^f P i°7 f ifn nf?i a ' showin g rivers and chief towns,
^vision of the Naval Staff "i™^ by th . e Int *™ e
series. wai ^ tati (1919) m connexion with this
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MANCHURIA
: '•':.
f' •*
LONDON:
PUBLISHED BY H.M. STATIONERY OFFICE.
1920
:
i
EDITORIAL NOTE
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with the preparation which they were making for the work
of the Peace Conference, established a special section whose
duty it should be to provide the British Delegates, to the
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.Intelligence Division) of the War Office.
Now that the Conference has nearly completed its task,
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tion, it has been thought advisable to include them.
.gi|i
WK
S, 'iil
f. >"
• Tf
! ;
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"i*
a i
;
J Ik.
It must be understood that, although the series of volumes
was prepared under the authority, and is now issued with
the sanction, of the Foreign Office, that Office is not to be
regarded as guaranteeing the accuracy of every statement
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The books are now published, with a few exceptions,
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Ko. 69— -i
Manchuria J
TABLE OF CONTENTS
I. GEOGRAPHY PHYSICAL AND POLITICAL
(1) Position and Boundaries .
(2) Surface, Coast, Rivers, and Lakes
Surface
Coast
Rivers
Lakes
(3) Climate .
(4) Sanitary Conditions
(5) Race and Language
(6) Population
Distribution
Towns
Movement .
II. POLITICAL HISTORY
Chronological Summary
Early History . • • •
Treaty of Nertchinsk, 1689 • •
Treaties of Aigun, 1858, and Peking, I860
Treaty of Shimonoseki, 1895 .
Lease of Port Arthur, 1898 • . • , Pl ..
Exchange of Notes between Great Britain and Russia
respecting Railway Interests in China, 1899.
Russian Occupation of Manchuria and Russo-Chinese
Agreement of 1902
Treaty of Portsmouth, 1905 . + ww OOT1
Treaty of Peking and Additional Agreement between
China and Japan, 1905 . •
Agreements between China and Japan, i»uy
Policy of the United States, 1909 , .
Russo-Japanese Convention, 1910
Treaty of Tsitsihar, 1911 . • • ,
Treaties and Exchange of Notes between China and
Japan, 1915
Russo-Japanese Treaty, 1916
Wt. 9014/849. 1000. 6/20. O.TJ.P.
PAGE
2
3
6
8
8
10
10
11
11
12
13
14
14
14
15-
16
17
18
19
20
20
21
21
21
22
22
TABLE OP CONTENTS
[No.
69
III. ECONOMIC CONDITIONS
(A) Means of Communication
(1) Internal
(a) Roads
(b) Rivers
(c) Railways . . ... ',
The North China Imperial Railway
The Chinese Eastern Railway
The South Manchurian Railway Company
Railway Projects .....
(d) Posts, Telegraphs, and Telephones .
(2) External
(a) Ports
Dairen
Newchwang
Antung
(b) Shipping Lines
(c) Telegraphic and Wireless Communication
(B) Industry
(1) Labour .
(2) Agriculture . .' ' " '
(a) Products of Commercial Value
Oil-seeds
Cereals
Ginseng
Fibrous Plants '.
Tobacco .
Opium .
Silk .
Bee-keeping
Stock-farming
Purs and Skins
Musk .
(b) Agricultural Methods
(c) Forestry .
{d) Land Tenure
(3) Fisheries
(4) Minerals
Coal .
Iron .
Asbestos
PAGE
24
25
27
27
28
31
35
36
38
38
40
41
42
43
43
44
45
46
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55
55
Manchuria]
TABLE OF CONTENTS
Com
Gold
Soda . .
Lime . . .
(5) Manufactures
(C) Commerce
(1) Domestic
(a) Principal Branches of Trade
{b) Towns, Markets, and Fairs
(c) Organizations to promote Trade and
merce
(d) Foreign Interests
(e) Economic Penetration
(2) Foreign . . .
(a) Exports .
(6) Imports .
(c) Customs and Tariffs .
(D) Finance
(1) Taxes
(2) Currency
(3) Banking and Financial Influence
(E) General Remarks .
APPENDIX
I. Numbers and Tonnage of Vessels entering and
clearing at the Three Chief Southern Ports
II. Note on Import and Export Statistics
III. Trade Analysis
• IV. Principal Exports .
V. Principal Imports of Foreign Goods
AUTHORITIES . • • •
PAGE
55
56
56
56
58
58"
60
62
62
64
65
66
68
70
72
74
75
76
79
82
85
86
87
I. GEOGRAPHY PHYSICAL AND
POLITICAL
< (1) Position and Boundaries
Manchuria, the north-easternmost dependency of
China, is hounded by the Chinese provinces of Chihh
and Mongolia on the west ; by the Siberian provinces
of Transbaikalia, Amursk, and Primorskaya on the
north-west, north-east, and east ; and by Korea on the
south-east. On the south it projects into the 'Yellow
Sea, the Liaotung peninsula being washed by the l*ull
of Liaotung to the west and Korea Bay to the east
It lies between 38° 40' and 53° 30' north latitude and
about 116° and 135° east longitude. The area is
probably something over 350,000 square miles.
The frontiers on the north, east, and south are clearly
demarcated, almost whoUy by rivers and the sea. lhe
western boundary is for the greater part undefined in
any reliable document or map, and is political or
ethnical. . , . , ' j„j
The diplomatic instruments in which are recorded
the limits on the north and east of Manchuria between
the Russian and Chinese dominions are the Treaty _ ot
Nertchinsk, 1689, the Treaty of Aigun 1858, and the
Treaty of Peking, I860. By the first the Argun river
was adopted as the boundary in the north-west, and
this is the only portion determined in 1689 which has
remained unchanged; by the second the Amur was
made the frontier from the Argun to the Ussuri river
on the north-east; and by the third the Ussuri, Lake
Hinka, and a portion of the watershed as far as the
Tumen river were fixed as the limits on the east.
Between Korea and Manchuria (provinces of Kirin
and Shengking or Fengtien) the long-established boun-
daries are the Yalu and Tumen rivers, the sources of
GEOGRAPHY
. !>■
69
which almost meet in the highest summits of the
Uiangpai-shan (Ever White Mountains). A vexed
question arose between China and Japan, after the
Kusso-Japanese War, in regard to a portion of the
Korean frontier (Chientao) : this dispute was settled
by an agreement of September 4, 1909, in which the
lumen was adhered to as the boundary.
Un the west between Manchuria and Mongolia, the
ooundary lies between the grazing-grounds of Mongol
• ? a n J, the cultivated lands of Chinese immigrants
?° m + - 1 fl Sh antung. In some maps the line is
drawn to include m Manchuria the Barukh (Barkhut,
^argu or Barga) country in the north-west, but the
KV^w^J nomads > under a separate organization
hke the Chahars on the Chihli border, and their country
mZIJ* ™ ethmcal sense be considered part of
n^tW M po ltlca % ^e Chinese regard them as
L™tr v X 0ng ^ - n ° r Manchu ' South oi the Barukh
X!i ad ™trative boundary has been steadily
colonS west ™d with the movement of Chinese
£2? M nd ^ n0W west of Taonanfu in land
CS f g °!l The sout h-western boundary of
35 bet ^en that province and Chihli is an old-
established one, and can be relied upon,
runs St ^ mc } uded in . Mongolia, the boundary
ranL S ^ a \r + 1 an l S ° 1 Utll - east ' c?ossiAg the Khingan
eSard tn°l l0 T tude 120 ° east > ^d turns sharply
thenTeTt W^ ^°T river in latitude 47° north;
the Sao and T 1° '*"* ^ aCr ° SS the val1 ^ ° f
kwan d Ta " lm S r ™ to. the sea near Shanhai-
(2) Surface, Coast, R IVEBS5 and Lakes
Surface
Kh T abarotk°to ^artSZ ^ ^ ari *™ from
approximately e^T^Z^T f &nchu ™ into tw0
tain system of rts own ' h ° f Which has a moun '
In the northern half" which consists of the province
fe
Manchuria] BOUNDARIES; SURFACE; COAST 3
of Heilungkiang, the Great Khingan Mountains run from
north to south across the western part of the province
and continue into Mongolia, while the Little Khingan
range roughly follows the line of the Amur along the
eastern border. These two ranges are linked together
in the northern part of the province by the Ilkhuri-alin
range. -
The Khingan system, which covers the greater part
of Heilungkiang, seldom rises beyond 4,000 or 5,000 ft.,
and is covered with dense forests. In the southern
half, which consists of the provinces of Kirin and
Shengking, the mountain system consists of a number
of ranges radiating from a peak 8,000 ft. high on the
south-eastern border. These mountains are lower as
they trend southwards, their chief characteristic being
that they are precipitous towards their summits. Lava
is seen in the neighbourhood of Ninguta, 40 miles
south of which is a very extensive lava field called the
Plain of Stone. All the mountains are clothed with
timber and cut up by ravines.
* The flat country, which is in places very fertile, is
confined to the basins of the Liao and the Sungari,
and to the steppes north of Tsitsihar. The soil of the
Liao is alluvial ; that of the iVshiho plain around
Harbin is composed of black earth and yellow clay ;
while that of the Liaotung peninsula is of a sandy
nature with a mixture of gravel.
Coast
The coast-line of Manchuria measures some 600 miles
in length, stretching from the Great Wall at Shan-
haikwan (Linyu) to the mouth of the Yalu. There is
a small junk harbour near Shanhaikwan, available as a
landing-place for boats, and the shore is here low, being
the edge of an undulating plain' 10 miles in breadth,
broken, however, by low. headlands terminating in
reefs. .
There are two harbours frequented by junks on this
section of the coast ; one between the island of Tao-hua
and the mainland, which serves as the seaport of
B2
£...
GEOGRAPHY
[No. 69
Ningyuanchow ; the other at Ta-chia-tsun at the
head oi Chinchowfu Bay. An artificial harbour has
also been constructed on the south side of Hulutao
promontory, which can be kept free of ice in winter,
and has depths of 18 to 30 ft. The head of the gulf is
bounded by a great plain, and the shore after turning
eastward becomes very low. Three miles north-north-
east oi Kaichow Point the Kaichow river flows into
the bay. ■ Owing to the shallowness of the approach, it
is navigable by small craft only, and large junks have
to he about 3 miles off shore. Hills now begin to rise
?SSi q nSfri ^ nd 12 miles inland a mountain ridge,
£UUU-d,000 ft. high, extends parallel to the coast into
^V ea f d X Grrit ?% of Kwantung. In the Liaotung
LTw + t' ^ 6Se hlUs tend t0 hu S the north-west coast,
so that the slope on that side is steep.
•,S Keuchow Point to Fuchow Bay the coast is
2Z d h . u \ affo , rd s little shelter. A favourable
mrthZZ 18 /^ m Hulu -shan Bay, some 17 miles
islaS of nl FU ^ 0W B ^> which ^ sheltered by the
Two .min Ch ^ S1 ^, except: from westerly wind*,
to the wl 'f^' Hsich ™g and Fengming-tao, lie
26 Me 5 at t] f^ tV&nce of Societ y Bay, which is
bv^ rnT, and 2 ° miles dee P' Its head is divided
Adam, ftj P^ontory into two parts : (1) Port
wfth a'ntvl^T ar ?' is an inlet 18 miles long,
Jraduallv H? 6 C ¥ nnel 2 to 8 cable « ^road, which
?£nne g y sSt^ aSe f t0 a shallow mud flat with narrow
side™ ferSJ 1°/°* T y f ma11 craft ' The Bouthem
^^^^•sa^*^ but the northern
Bav is TGr^w! S (2) 7 he soutl iern arm of Society
fathoms^nd uZi* Ba ^ hich has depths of 1 to 4
^^ItJCS^ZT^ is , the
inlet with an m + M . 7 ^ ort Arthur, a large
Manchuria] COAST AND HARBOURS 5
winter. The East Port is a tidal basin, 500 by 350 yds.,
and 23 to 26 ft. deep. The West Port contains many
mud flats, but a certain area has a depth of 21 to
35 ft. East of Hsiaoping-tao, a narrow peninsula 261 ft.
high, the coast becomes broken and rocky. Thirty
miles east by north of Port Arthur is Talienwan Bay,
6 miles wide and 6 miles deep. Dairen (Dalny), 40 miles
by rail from Port Arthur, is on the south shore of
Victoria Bay. The outer part of the bay is generally
free from ice in winter, and though the inner bay may
freeze slightly, it seldom interferes with navigation.
East of Talienwan Bay is Yentao Bay, which affords
a well-sheltered anchorage, but is rather shallow. At
its head is the mouth of the Wu-hu-men river.
The coast from this point trends east-north-east lor
76 miles to the mouth of the Tayang-ho, and is hilly
and bordered by extensive mudbanks. About 9*miles
north-east of Terminal Head is the mouth or the
Tasha-ho, and 6 miles farther in the same direction
is the small town of Pi-tzu-wo, with an ice-free harbour
much frequented by junks. From Pi-tzu-wo to the
Yalu river the sea along the coast is very shoal, and
there are three principal groups of islands lying oft it,
the Blonde, Elliot, and Bourchier. Farther out is the
island of Haiyang-tao, with a peak 1,320 it. high.
Thornton Haven on its western side is the only harbour
in these islands where small vessels may find shelter
in 3i to 4 fathoms. Four small streams flow into tne
sea between Pi-tzu-wo and the Tayang-ho, a some-
what larger river which can be ascended by boats as
far as Taku-shan, 8 miles from the mouth. Larger
junks and small steamers anchor some miles oft the
coast, south of the island of Talu-tao. _
Tatungkow, a treaty port, is situated at the head oi
a tidal creek just within the mouth of the Yalu river.
Two narrow channels lead into the Yalu, of which the
eastern is most used by vessels proceeding to Antung,
some 20 miles up the river. For four months in the
year the approach is ice-bound.
>6
GEOGRAPHY
Rivers
[Wo. 69
As regards rivers, Manchuria falls into two well-
defaned portions corresponding almost exactly, one
^ + rS hernprovince of Shengking, which drains
into the Yellow Sea, the other with the two northern
provinces of Kirin and Heilungkiang, which drain into
tne Amur, with the exception of a small area in the
south-east of Kirin, the waters of which find an outlet
into the Sea of Japan.
^ The greatest Manchurian river is the Amur. Formed
by the confluence at Ust-Strelotchnoi of the Shilka,
whose course lies wholly in Siberia, and the Argun,
which separates Manchuria from Russian territory on
the north-west, the Amur itself constitutes the northern
S? 2? r n « aSter . n froi * tier as far as Khabarovsk, and
even^ally flows mto the Gulf of Tartary at Mcolaevsk. >
W^T x? wl J dest discrepancies in the figures given
for the length of the river. The fact seems to be that
i T WW? TSS fr ° m Ust "Strelotchnoi to Nicolaevsk
is between 1,600 and 1,800 miles, but by reckoning
thi AiSf Ht d 3R ^ erS ° f Various constituent streams"
arriw S / ^ ^h' ° r the 0non > different authorities
HI tLl ^ol 2 ' 100 or even 2 ' 92 ° miles,
th™ «,£ 7 miles of its C01irse > the Amur flows
This ^1*T °T^ Va i le y dee P!y cut into the plateau,
but tW. S ° r th v 2 ? 3 miles above Blagoveschensk,
coLunfVV^ ^ tle "Nation, and the river is
thrlm^fn f gm ^ C0Urse '- Below Blagoveschensk,
Plaim n non / + S T ddle course waters ^e ? high fertile
the Ilkifri «H * abo y e « ea level), which stretch between
stream her?* T* - L ? tle Khin g an Mountains. The
TSs aoart Afp "ft* SeVeral branches > sometimes
bZ and tbl t PaS ^° Va {t enters a gorge 87 miles
S Southerly ZToTx ^ ^^atfaining the
the SungaTwhoS XolntZ^Y" ^ juncti ° n with
its own After ^ht£ -j ° f water ls nearl y equal to
-ins rising considerably ^tmTn'g &STS
/""""N,,,
Manchuria]
RIVERS
miles wide on both banks. The Amur is closed by ice
from October to May. „
Proceeding up-stream, the first southern tributary
of the Amur is the Ussuri, which rises in the mountains
north of Vladivostok and forms the boundary between
Manchuria and the Primorskaya from Lake Hmka
(Khanka) to its confluence with the Amur near
Khabarovsk. It is in all 350 miles long -.-
The next and most important tributary is the
Sungari, which with its tributaries waters the great
central basin of Manchuria, and whose drainage area
must amount to about half the whole country '-J*™*
on the north-western slopes of the ®n^$B£
range, the Sungari first flows *°^-™*J^VaA in
to join the Nonni, and then ^north-east past Har.bm
into the Amur, at a point 135 miles above Khaba-
rovsk and the junction of the ^sim. Its i«ig^ «
some 600 miles. Above its junction with the ^
the Sungari is also sometimes known as the Sonnoa
^ The Sungari has two important tributaries, the
Nonn! and tie Hurka. The Nonni ri,es on ^ee^ern
slows of the Great Khingan Mountains north oi
Smar and flows from t^north to jom the Sunga
not far from Petuna. Small craft are sa ad , to ^
for some 350 miles as far « ; Mergen a ^™J£™k
town about 125 miles south-west of Blago ™s^*.
above which point its course has ^^^S
The Hurka or Mutan-kiang rises about 1UU nines
south-west of Mnguta and almost the same distance
outhrstoi ! Er& and after passing Nmgut. .flow
due north into the Sungar-t|^nsmg -^ co™
above its junction with the Amur.
me S r X- '"flows from the Dalai-nor or
Kuto-niXke I Pokrovsha, completes the hst of the
principal Manchurian tnbnterms oi the Amm Three
smaller streams, the Kumara, tne ^ xr P ii 11T1 „idan2
Albasicha, drain the northern portion of Hei ^aan^
The only eastward-draining river of Manchuiia is
GEOGRAPHY
D
JSTo. 69
the Tumen which, rising on the eastern slope of the
Ohangpai-shan range, forms the boundary between
northern Korea on the one hand and Manchuria and
0^™?^ ° n the other > and fl °ws into the Sea
ot Japan, after a course of over 200 miles.
Tinn ^ S °v h 7 the 1 chief ri ™rs are the Yalu and the
of +L niT Yal ^ 1 whosG head-waters are on the south
tbP 1 +T. angi ; ai " sh 1 an ran S e ' forms for *» entire course
it frn^ £ em boundar y of Manchuria, separating
Ta WL- ^/^ fl ° WS into the Gulf of Korea near
latungkow It has a course of some 300 miles.
oWi* .a -l Ver rises he y° nd the borders of Man-
muren' JT ? UPPer C0Urse ' known as the Shara "
bet™ M mS ?" m0 ? than 300 miles ^e boundary
eve7T, a lfo g ° r a /. nd Chihli - The name Liao, how-
tile Zt ? PP led - to a nort hern tributary which joins
pronSlvk. am JUSt . above Tungchiangtzu and is
Kor^iT ♦*! -? 6 T ^S-^o or Hersu river.
■ftaZ^M^ ant tr n xbutar J ^ the Hun-ho, on which
^tJ^^^ d J Uoh unite «> Portly above its
Liao W fi? tbe + Ta it Z e-ho from Liaoyang. The
Xnchuri-T mt °* the Gulf of Liaotunf, after
Lakes
is Lake" BirteiW^ Tr P ° rtant - South °f Ninguta
boundary of lS" k) ; north °f Vladivostok the
waters S the We T^V g?T thr ° U g h tlie ^ GT
countrv are tbt ^ i • Hmka ; and in the Barga
There Ire cL^ht" 110 '^^ 11 - 1101 ) and B ™- nor '
of the Su^tjs ? o^ hy regi ° nS al °^ the COUrS6S
(3) Climate
»pS| tTtt™r a h ™r oo s tine . ntoi - ™ th • ^
Manchuria] RIVERS ; LAKES ; CLIMATE 9
easterly Avinds prevail. In March strong south-westerly
winds set in and blow for about two months ; and in
summer southerly and south-westerly winds prevail.
Sudden northerly gales occur and are to be looked for
in October. - ' ,
The frozen season extends in the north from October-
to the end of April, and the temperature not infre-
quently falls to -58° F. (-50° O), while the ice on the
Shilka and the Argun rivers is 6 ft. thick. The cold is
less intense in central Manchuria and decreases con-
siderably in the south, where the frozen season ends
at the beginning of April. Thus the temperature of
Harbin aleragef- 1-5° F. (-18-5° C.) of Moukden,
7-5° F. (-13-5° C), and of Dairen, 24-5 F. (-4-Z u.j.
Dairen and Port Arthur are ice-free ports, but tne
river mouths and the rivers themselves elsewhere are
frozen for about six months in the year, and the ice is
thick enough for cart traffic. '
April is the spring month in the greater part of
Manchuria, the temperature averaging 42 *. (ft-o > o W
at Harbin, 48° F. (8-8° C.) at Moukden, and 47-5 *.
(8-5° C.) at Dairen. , T , ' ■,
In May summer begins, and in June, July, ana
August the heat is great, the temperature averaging
about 75° F. (23-8° C), the maximum being 99 or
100° F (37-2-37-7 C). The difference m the summer
heat of the northern and southern districts u s slight
the central parts of the province being hottest. October
is the pleasantest month of the year.
The average annual rainfall for the province u > 2 L 3
inches (540 mm.), of which 26 per cent. faUs mJ«
21 per cent, in August. The rapy seas on larts ^
in the north, but there the ram is lighter In ^e south
it is verv heavy for a short period, and renders the
ounti; "LpSble, except in the few dMrota .where
modern roads have been made The snow-f aU la > coin-
paratively -light, covering the highways to a depth ot
one or two feet, and permitting the use of sledges.
10
GEOGRAPHY
[Wo.69
Manchuria] HEALTH ; RACE; POPULATION 11
(4) Sanitary Conditions
The climate of Manchuria is healthy, the summer
heat being temperate, and the winter, though severe,
dry and invigorating, so that with ordinary precautions
m the sterilizing of water and food and with sanitary
surroundings the European has nothing to fear.
1 he common diseases among the Chinese are a mild
f Z[^ Tio fever ' sma ll-pox, dysentery, and a sort
ot ophthalmia. The last is occasioned by dust and
aggravated by dirt and neglect; it can be cured if
taken m time, but if treated by the native methods
frequently results in blindness.
(5) Race and Language
The original Manchus belonged to the Tungusic
branch of the Ural-Altaic family. For a long time
tney were able to resist penetration by the Chinese,
out in modern times the latter flowed into the country,
and now constitute 90 per cent, of the population.
■Wwi f wo . ra . ces have mixed, and pure Manchus are
tound only m the northern parts of the basin of the
SS r 1 ^ d - al ° ng the UssurL In Heilungkiang and
Si* r n th , GIe are a number of small Tartar
tribes, such as the Yu-pi-ta-tzu or Fish-skin Tartars
Lone W K 1 ' below Lansing, and the Gilyaks, or
trS • ^ ?*%**> on ^e upper Amur and its
OW, T V+t S £ e ? the Sibo and Solon Manchus, the
?2!? d th ! e Goldi - In the districts adjoining the
anTfn^T lMge numbers of K °reans have settled,
also ™L r ma J° nt y of the population. There are
settled SL Ja P aneS M and R ™ns, who are mostly
settled along the railways.
the M«nnK? t l ie COmmon language of Manchuria, as
^^^S^K-p^^y extinct - The
roots, 4e meaZrof lT'i, COmpOSed ° f ' dissvllablC
tmat ve suf ger III -\ m modified b ^ agglu '
southern M^ufe^^^
(6) Population
Distribution
According to the Minchengpu census of 1910 the
population of Manchuria was 14,917,000. J The 'Customs
estimate for the same year was 17,0U0,IMJU. ±ne
Japanese Official Guide gives an intermediate figure,
15,834,000, distributed as follows •
Area.
Sq. Miles.
166,700
100,000
88,900
355^600
Heilungkiang
Kirin
Shengking .
Totals .
The following figures are taken from the Statesman's
Year Book for 1918
Population.
1,456,000
4,222,000
10,156,000
15,834,000
Density'
per Sq. Mile.
8-73
42-22
114-24
~4Aft~'
Heilungkiang
Kirin
Shengking'.
Totals .
Area.
Sq. Miles.
203,000
105,000
56,000
Density
Population, per Sq. Mile.
1,500,000 7-39
6,000,000 57-14
10,312,241 184-14
^000 17,812,241
48-93
The bulk of the population is «°j^^ J^_£ e
railways, in the Liao valley, and m the Sungari basm
The Hunchun and Lungching sun di tnct s m the
Tumen basin have populations of 40,000 and 1250UU
respectively For the rest the country is sparsely
pop P ltd y the inhabitants ^™^ m jJSS
towns and villages ; or, in the north °W»^%^
a nomadic life and engaged in hunting and trapping.
'• • Towns
The chief towns in the north are Aigun (30 000>
opposite Blagoveschensk on the Amur; Manchuria
S?^ and Khailar on the Chinese Eastern Railway ;
and Tsitsihar (30,000) on the Nonni -*™ . p
In the Sungari basin are Kirm (about 10W.F
tuna or Sinchengfu (30,000); Shwangchengfu (40,000)?
12
GEOGRAPHY
[No. 69
Sn r n^ (a ^ out 100 >°00) ; Hulan (30,000) ; Bayansusu
(30 000); Ashiho (30,000); Sansing (15,000); andNin-
guta on the Hurka (30,000).
On the North China Railway are Chinchowfu (30,000)
and Newchwang (70,000). On the Southern Man-
cmiria ftailway are Changchun (about 100,000) ; Kai-
yuan (28,000); Tiehling (33,000); Moukden (173,549);
nn S g S > 00 °) i Haicheng (15,000); Kaipinghsien
'2 ; -Dairen or Dalny (46,000) ; and Port Arthur
Movement
In the absence of reliable statistics it is impossible
™ speak of the birth and death rates or of the increase
and decrease of the population in general. The chief
™™? e x lncrease is immigration, the immigrants
coming from Mongolia, Korea, Russia, Japan, and
T +t Pe S y from China -
finnnnnv™ en basin alone th ere are not. less than
S™ f ttlers - There must be quite 50,000
SE, ***■ about the same number of Japanese,
of i™lf aml 7 al0n S the Always. But the main flow
ChihTSfS 8 ? mes from the Chinese provinces of
cori; Shantung. It is said that 250f000 Chinese
ttem^tvT^ ntung ever ^ s P rin S' a » d though
al™ 1 ™ J £ th , Gm return in the aut'Smn, there are
thlt y iOO SZt ° f P erma nent settlers. It is estimated
aloneT/S 2"? Se have settled in ^e Kirin district
alone during the' last eight years.
Manchuria"!
II. POLITICAL HISTORY
[This Section is intended to be read in conjunction with China,
No. 67 of this series.]
Chronological Summary
Tenth century.' Establishment of the Liao dynasty by the
1115. FouMaMon of the Chin dynasty by the Nuchtos.
Thirteenth century. The Niichens driven out by the Mongols
1644. EalTot^M^g^y. ^of the Manchus.
1689. Treaty of Nertchinsk between Russia and China.
1847. Russian exploration of the Amur.
1851. Nicolaevsk and Mariinsk founded.
1853. Alexandrovskand Constantmovsk folded .._
1858. Treaty of Tientsin between China, Great Britain, i ranee,
Russia, and America. _
1858. Treaty of Aigun between Russia an <J C 3 a A hina
1860. Convention of »^ Jf^^fJ^^"
1881. Treaty of Petersburg between R ^™ d C ^ n
1895. Treaty of Shimonoseki between Chm and Japan.
1897. Seizure of Kiaochow by Germany 0*™™™*'
1897. Russian fleet sent to Port Arthur (December).
1898. British cruisers at Port Arthur (January).
1898 Port Arthur leased to Russia (Marcft).
1899. Russo-British Railway Agreement.
1900. The Boxer outbreak. _ T? 118S ia (June).
1900. Manehurian provinces <k<^ *" ^ RUS ( '
1900. Occupation of Manchuria by Russ^ evacua tion
1902. Russo-Chinese Agreement ot TeJang ioi
1902. ConveSn between Manchuria and Japan.
iSSS" K^f P pSg^nd additional Agreement between
1909." Botr^nd'Sway Agreements between[China and
Japan. *
1910. Russo-Japanese Convention.
1910. Annexation of Korea by JjPJJ;. d china .
1911. Treaty of Tsitsihar between Russia ana onin<i.
1914. Capture of p ao £ h °l- motes betw een China and Japan.
1915. Treaties and exchange ot JNotes Deweei
1916. Russo-Japanese Treaty.
14
HISTORY
[no.
^ Z V H %sto ry-— Before the conquest of China by
tne Manohus, Manchuria was the abode of various tribes
ot tne lungus race, sparsely distributed along the
courses o± the rivers. These tribes were known to the
?at G . ? nder man y na mes, amongst which Khitan
and Nuchen (Nuchih) stand out ; they were mostly
lorest hunters, though those in southern Manchuria
oecame to a large extent farmers. The Khitans made
tneir hrst appearance in the beginning of the tenth
century when they established the Liao dynasty and
ruiea a territory embracing much of south-west Man- .
cnuria east Mongolia, and north Chihli. Two cen-
turies later they were in turn overthrown by the
in ucnens, who were the direct ancestors of the Manchus.
rf™ V i 5 Ntich§ns founded the Chin (Golden)
aTnasty, and, a century later, were driven out by the
fh^M ? nder Jenglliz Khan 5 bu * their descendants,
d™w °n^? turned t0 P° wer on ^e fall of the Ming
SH^^mi: 01 " 1 ** Chinese Empire until
cen^™$ N T Ch t nsk > 168 9— Early in the seventeenth
toth^£ ? US - Slan P en etration of Siberia extended
estabh.W M S v a , nd led t0 conflicts ^h the newly-
W the Trl^t^ 11 ^^ TW were put an end to
Russia J w! ty ,° f N , ertc hhisk (1689), under which the
and bev^f^T Gd t0 retire behind the Argun river
TreJtv^ A 6 A T r K o Watersned on ^e north.
Earh Z tf 9 ™: 185 ?' and Treat V °f ™™9> ™W>-
^!C£olT ete T th Gentur y the attention of the
and an tlf ™ again dire cted to the Amur,
made ?o oblT A**^** appears to have been
tTfacnLt. P L fr0m the Chinese the right of using it
viev Gove^or P Und ^h e active rule of Count Mura-
onward X X- f ?***** Siberia, from 1847
Ch7na and setTlL f eXpl ° red with °nt reference to
In 1851 StaS^Sd ™. ^shed on its banks.
1853 AlSTv ^ a Maninsk we re founded, and in
hshed on the s Ia P n?i C r- tantinovsk we re estab-
on the sea-coast, all m territory which was
Manc^ia] TREATIES OF AIGUN AND PEKING 15
unquestionably Chinese according to the Treaty of
Nertchinsk. These encroachments, and others ot
a more warlike nature, arising. out of the feds of the
Crimean War, were the subject of protest fromChm
whose hands were tied by the Taiping re bellion ^ and
the disputes with Great Britain ; and fin ally, under
pressure from Muraviev, the Treaty of Aigun was
concluded (May 29, 1858) to regularize the new con-
ditions. Under this the whole of the north bank of
the Amur from the Argun fork to the sea was recogr used
^as Russian; the south bank down to the Ussun as
Chinese ; and the territory between the Ussun and the
,sea was to be held in common, pending a settlement
of the frontier. Later, advantage was taken of the
second Chinese war with Great Britain to press claims
to the Ussuri country, and on November ■ 14, 1850
General Ignatiev signed a convention at Peking under
which China ceded this tract to Russia.
For over 30 years little more was shea rd ^ Ma n c huria
The port of Newchwang, opened by the Treaty j
Tientsin (June 1/13, 1858), was the onlypomto genera
foreign interest, and that was purely commercial untU
the quarrel between Japan and Chin* ot» ^ea
brought the question of Manchuria acutely to the
notice of the European Powers.
Treaty of Shimonoseki, 1895-Under the treaty ot
peace concluded at Shimonoseki on ^£^1885^
Count Ito and Li Hung-chang, the. southern PortKmoi
the Shengking (Fengtien) province of Manchuria was
ceded by China to Japan. „ 11T . rPT1 t of opinion
There had been for some years a f7 n re ^.^Xs S °a
that the ice-free port in eastern Asia whicn Russia
™ iTsearch of wL to be found in the territory thus
was in searcn oi w« , v events, Russia, in the
Treaty of .Shi—hi ,- ^StanchS £
C^rrth^ound^rthe occupag , of Port
Arthur by Japan would ' destroy the political balance
of the Ear East '. France and Germany, fell m with
16
HISTORY
f No. 69
1 SqVp ' * Ut r ? reat Britain decIine d to do so. In May
w»? ?' ? erman y> and France made joint repre-
n P r^° nS +1 i apan ' rec °mmending her not to occupy
' LS ? the territ0I 7 ceded in southern Manchuria,
2,27 atlons were g^en that the advice, if unheeded,
would be supported by force of arms. Japan yielded
So* il C + ° alltl i )n ' and in a Convention of November 8,
■oonfw fT the districts m question, receiving as
frnm P nT n r a m ° ne ^ P^ent of 30 millions of taels
Rmtf« ? ma " • f 6 * 1 " 11 for her services in this matter
St, glVen hy China the rf g ht to carry the Siberian
^?JJT5^ lrthem Ma nehuria from Stretensk to
further L?^i C ? meSe Eastern Railway) ; and it is
Convent ^ a Secret treat ^ known as the ' Cassini
ne«SSV T l more Probably an understanding
?hf rlt ^ Ll Hun g" c hang at Moscow, gave Russia
Arthur m Certain contingencies to occupy Port
mmtiT^l°f ^L thi8 and later events it may be
S the Tetw* 'V 8 ^ a n official statement was made
^^^th^* Germa nj had come to an under-
China. g USSla on their respective interests in
KitochoWNnf 1^' 1898,-After the seizure of
ChLa wL ( .pJT b + - r 1897 )' a nd while Germany and
wnl?e r IrPort g A ;t tm f4. the Russian Aeet was sent to
^^f^^f^sr^ 1897) ' and when two
Russian AmTass^orl T er ^ m Januar ^ 1898 the
request therrwS in t London was instructed to
the Russia' l£ ^ ™ ° rder to a ™d friction in
^^G^Tc^ in ? uence '- ^ March 1898,
for a lease of S + Co A n ^ntion was signed, a demand
forward W R u 2f ^J* and Talienwan was put
between the Brit hh A S i ar P. corres Pondence ensued
British Government, U T mn Governments. The
Russia oT a n Te ?t re KOt ° P -P osed to ' the lease by
Manclmria] LEASE OF PORT ARTHUR 17
the neighbourhood of Peking', and that the occupa-
tion of Port Arthur 'would inevitably be considered
in the East as a standing menace to Peking and the
commencement of the partition of China '. China,
being unable to resist it, acquiesced in the demand ;
and the British Government received assurances that
'the Russian Government had no intention of infring-
ing the rights and privileges guaranteed by existing
treaties between China and foreign countries . By an
agreement of March 27, 1898, Port Arthur, Talien-
wan, and adjoining territory (Kwantung), all ot which
had been retroceded by Japan in 1895, were leased to
Russia for twenty-five years. _
Exchange of Notes between Great Britain and Russia
respecting Railway Interests in China, 1899.— In me
spring of 1898 the Chinese Government^ entered into
negotiations with a British bank to raise a railway
loan, secured on the lines already constructed, lor an
extension of the North China Railway through southern
Manchuria to Newchwang. The Russian representa-
tive at Peking, M. Pavlov, demanded that the British
engineer should be replaced in the sections north ot
Tientsin, and objected to these railways being mort-
gaged to British subjects with a right of control in
case of default. , , , , „ i T
The British Government took the matter up strongly
both at Peking and St. Petersburg as a breach of the
Treaty of Tientsin, and in the end the British railway
loan was carried through. At the same time an agree-
ment was concluded between Great ^Britain and Russia
by an exchange of Notes on Apnl29, 1899, m which the
former engaged
< not to seek for her own account, or on behalf of British sub-
jects or of others, any railway conce ssions to the n «^ <*«»■
Great Wall of China, and not to obstruct directly or ^cUy, -
applications for railway concessions in that region, supported
by the Russian Government ' ;
while Russia, on her part, gave an identical under-
taking with respect to railway concessions in the basin
18
HISTORY
[Ho. 69
of the Yangtze ' and applications for railway concessions
in that region, supported by the British Government.
Occupation of Manchuria by the Russians and Russo-
Chinese Agreement of 1902.— During the Boxer outbreak
the Governors of the Manchurian provinces declared
war on Russia (June 1900), in obedience to the
Imperial Decrees issued under the influence of Prince
luan. Their sudden attacks created a panic along the
Amur and led to savage reprisals, the Chinese popu-
lation of Blagoveschensk, some 5,000 men, women,
and children, being at the outset driven into the river,
boon afterwards Manchuria was overrun by Russian
troops, and proclamations were issued by the Russian
commanders which amounted to declarations of con-
quest. In December 1900 a Russo-Chinese agreement,
concluded at Moukden by the local Chinese. authority,
came to light, by which the province of Shengking
(*engtien) was placed under Russian control, and this
was ioliowed up by negotiations at St. Petersburg with
tne Uimese Minister for the conclusion of a formal con-
vention which would, in effect, constitute a Russian pro-
tectorate over Manchuria. Some leading Powers advised
P™ i. abs * ain . from separate negotiations with one
rower while the joint conferences for the Boxer settle-
^*v re P roceed £g at Peking, and a strong Chinese
opposition arose. The Chinese Minister at St. Peters-
S J a « 'i? ^ to refu se his signature, and on
oS ' 01 .' ^ e Russi an Government issued an
hfvTi C i? mm ™ 1(1Ue t0 the effect tha t, their instructions
S^&SST 1 " 6 ^ 1 ^ the Convention ™ tem -
SifX^V h ^ tum of the Chinese- Court from
neaotllL "I, ( J ™ ar J 1902), Russia renewed her
which had h Sh l aban doned some of the demands
^'^aWSoS^* the year before > and ^ °t
Peking 1Xtl„ '-l 9 ??' an a g r eement was signed at
bv Et P ' P r ded f ° r the eva ™ation of Manchuria
S,derfte4 a ri U ? n ™™ ths - That the terms were so
BrlLZn % SU r P T P ° rt given to China ^ Great
Britain, Japan, and the United States. It was soon
Manila] RUSSIAN OCCUPATION, 1902 19
apparent that they did not satisfy the Russian Govern-
ment. In October 1902 the railway between Shanhaik-
wan and Newchwang was restored to the Chinese, ana
the country west of the Liao river was evacuated in
accordance with the agreement ; but when i jappeared
that, in the negotiations of Japan and .^United
States for the commercial treaties provided ioi m
the French Protocol with China, three new^ ports
were to be opened in Manchuria, Russia refused to
carry out the second stage of evacuation until ^certain
further demands, designed to rivet i Russian control on
Manchuria to the exclusion of all other foreign in-
fmences, were conceded. a + „ +QO Qf raiVi
Great Britain, Japan, and the United States , again
supported the Chinese in refusing the fresh demands
and representations were ^ade by all three Powers at
St. Petersburg. China being unable to P^ ™**°™
to a practicll conclusion, Japan .^°~ *£*^
ranked next in importance, entered ^to negotiations
at St. Petersburg and offered to recognize the speoud
position of Russia in Manchuria * »^JX
recognize that of Japan in Korea, and provided also
that Russia would join with Japan in t an engage ment
to recognize the territorial integrity of China and ^ Korea,
and to maintain the < open door in b^™™*^
Russia refused to make the smallest concession, and
the Russo-Japanese War resulted.
Treaty of Portsmouth, 1905 -The Treaty < of Ports
mouth, by which the Russo-Japanese Waxof 1904-6
was brought to an end, recognized th e P r 5 ed « m ™
political, military, and economic in tere Jj "J^J
of Japan ; provided for ^e simultaneous evac nation
of Manchuria by the forces of Russia and Japan t and
transferred to Japan the Russian le ^ase o f Kw a ntung
(Liaotung) with all the privileges attachmg mdudmg
that portion of the Chinese Eastern Ra lway south _ot
Kwan P chengtze (OtB^^^J^^^^
leased territory, was to be restorea em. j ?
pletely to the exclusive administration of China
whose consent to the transfer of Liaotung to Japan
02
20
HISTORY
[Wo. 69
was to be obtained. Russia disavowed the possession
of exclusive rights in Manchuria inconsistent with the
' open door ', and Japan and Russia
engaged reciprocally not to obstruct any general measures
common to all nations which China might take for the develop-
ment of commerce and industry in Manchuria.
The southern part of the island of Sakhalin up to the
50th parallel of north latitude was ceded by Russia
to Japan under Article IX of the Treaty of Portsmouth.
Japan and Russia mutually agreed not to construct
fortifications in their possessions on Sakhalin or on
the adjacent islands, and not to take any military
measures which could impede the free navigation of
the Straits of La Perouse and Tartary.
In Article XI of the same treaty Russia undertook
to come to an agreement with Japan to concede to
Japanese subjects fishery rights along the Russian
coasts in the Seas of Japan, Okhotsk, and Behring.
^Treaty of Peking and Additional Agreement between
China and Japan respecting Manchuria, 1905.— China's
consent to the transfers and assignments made by
Russia to Japan by the Treaty of Portsmouth was
obtained m a treaty between Japan and China signed
at Peking on December 22, 1905. In an Additional
Agreement regulating railway and other matters,
China engaged to open a number of towns in all three
provinces of Manchuria to international residence and
trade. China's own position in Manchuria was not
greatly altered by these documents : she had two Powers
to deal with instead of one, for Russia retained her
rauway zone m northern Manchuria ; but in the south
Japan was at this period more conciliatory in her
methods than Russia had been.
Agreements between China and Japan, 1909.— But
vexed questions arose with Japan over Manchurian
attairs, _and the tension was not removed until the
conclusion of W agreements (September 4, 1909), in
Ztf w ^ the T u men river was made the boundary
between China and Korea, and Koreans were allowed
Manchuria!
1909-11
21
to settle freely in the border district of Chientao, but
were made subject to Chinese jurisdiction ; in the other
railway and mining questions were arranged.
Policy of the United States, 1909.— After the Russo-
Japanese War there had been a marked tendency on
the part of the United States to champion the rights
of China against Japan. In 1909 an active policy, com-
mercially and politically, was inaugurated by President
Taft in China, and the first step taken was to insist on
the participation of American financiers m the Hukuang
railway loan. The real aim, however, was Manchuria,
where there had been for years a special American
trade interest. An American group was given a con-
cession for a railway in Manchuria from Chmchow
to Aigun, and in November 1909 an unsuccessful
proposal for the neutralization of railways in Manchuria
was made to Great Britain, Prance Germany Russia,
Japan, and China by the American Secretary of State
Russo-Japanese Convention, 1910,-Shortly after-
wards (July 4, 1910) and no doubt in consequence* rf
this last proposal, Japan andRussia signed a Convention
in which the two Powers agreed to work together on
Manchurian questions and to maintain the >, statu*
quo in Manchuria resulting from treaties and other
arrangements concluded up to date between Japan-
and Russia, or between either of them and ^ma m
The treatv of August 22, 1910, by which Japan
annexed KoL! altered the ^status of the numerous
Koreans inhabiting the Chinese borderlands, and
entitled them to the privfieges of Japanese consular
jurisdiction. This must be noted as a y m P°^ nt
'addition to Japanese interests m southern f a nchuria
Treatv of Tsitsihar, 1911.— Since the Russo-Japanese
War China has been disposed to treat Russian affairs
with Httle consideration, and disputes connected with
the long Siberian frontier accumulated The conclusion
of the 1910 Convention with Japan emboldened Russia
to take a stronger line with China ^ d on February 6
1911, she made a series of demands at Peking to secure
the full enjoyment of the 1881 treaty, which she
22
HISTORY
[Wo. 69
alleged had been practically abrogated. After a long
discussion, on March 24 an ultimatum was delivered
by Russia, and the acute controversy was closed by
a note of the Wai-wu Pu accepting the Russian
demands completely and unequivocally. Later (De-
cember 20, 1911) a treaty was concluded at Tsitsihar
delimiting the frontier in northern Mongolia from
frontier point No. 58 to frontier point No. 63 and
further along the Mutny tributary up to the River
Argun ', and thence along the Argun to the Amur.
Treaties and Exchange of Notes between China and
Japan, 1915.— Following the capture of Kiaochow
(November 7, 1914) Japan made a series of demands
upon China. Some of these were reduced in the course
of the subsequent negotiations; but in the treaties
and exchange of Notes which recorded the final settle-
ment (May 25, 1915) the following terms relating
to bouth Manchuria were included :
1. The term of the lease of Port Arthur and Talien-
wan, and the terms of the South Manchurian and
Antung railway concessions, were extended.
j. Japanese subjects were privileged to lease land
q *° * rade tnrou ghout South Manchuria.
6. Mining areas in South Manchuria were allotted to
Japanese enterprise.
4 " . A Pf^ 1,61106 was given to Japanese capital if
required for railways in South Manchuria, or if loans
were made on the security of the local taxes ; and
o. it loreign advisers or instructors on political,
nnancial, military, or police matters were to be employed
first*' Manch uria, Japanese were 'to be employed
It is noteworthy that the ' South Manchuria ' of these
aocuments is an indefinite term and the interpretation
of it may easily lead to disputes.
^f^so-Japanese Treaty, I916.-By a Treaty of
iS; ?V 191 t 6 > Ja P an an <* Russia agreed that neither
coSLr a P art y to a *y political arrangement or
UakeTn^ 11 i dU ? Ct i ag r 8t ' either of ^em, and to
take counsel of each other as to the measures to be
Manchuria] RUSSO-JAPANESE TREATY, 1916 23
taken in view of the support or the help to be given
in order to safeguard or defend the territorial rights
or the special interests in the Far East of one of the
contracting parties ' should these be threatened.
Concurrently with the conclusion of this treaty, the
Russian Government ceded 60 miles of the Chinese
Eastern Railway between Changchun and the Kiver
Sungari to Japan, in appreciation of the goodwill
shown by the latter since the commencement of tne
war in regard to the supply of munitions. In addition,
Russia agreed to recognize, so far as she was concerned,
Japan's right of navigation on the Sungari between
Kirin and the junction of the rivers Nonni and bungan.
This right was secured to Russia under Article 11 oi
the Aigun Treaty of 1858 between China and Russia ;
hitherto it had been exercised only by Russian and
Chinese subjects.
24
[»0. 89
III. ECONOMIC CONDITIONS
(A) MEANS OP COMMUNICATION
(1) Internal
(a) Roads
The roads in Manchuria are bad, being little more
than tracks, more or, less defined, between town and
town. Unmetalled owing to the scarcity of stone, they
easily wear into ruts and become quagmires in the
rainy season. It is when frozen hard during the four
months of winter that they are best fitted for travel,
and they then have to bear an enormous traffic of two-
wheeled country carts. These vehicles, each carrying
irom I3 to 3J tons and drawn by as many as eight or
nine mules travel in convoys sometimes half a mile
m length, bearing a miscellaneous freight of native
and foreign produce.
Among the principal routes provided with better-
class roads is that from Yingkow (Port Newchwang)
through the old city of Newchwang * to Liaoyang, and
thence by three branches to Moukden. Another such
route runs from Liaoyang to the Yalu. On some of
KniifT"! i es of communication bridges have been
mult by local merchant guilds ; on others in the north
t« l?nt + G l have been supplied by the Government
rL+ r ? the 1 conve yance of troops. The Imperial
post routes, such as that from Tsitsihar, via Petuna,
in ^ P • and 1 fr ° m Kirin ' via Ninguta, to Nikolsk
are slli^T? ^ °* Maritime Province of Siberia,
the Si? ke ttei \ than the ordinary roads. In winter
a rOaT^ n ^ ? the Lk ° ™ takes the P lace of
TraHiZ W1SG d0ds that of the u PPer Sungari.
trading caravans make their way from the province
1 Concerning Newchwang see below, p. 40, foot-note.
Manchuria J
ROADS; RIVERS
25
of Shengking (Fengtien) into Kirin and Heilungkiang
and even into Mongolia, and do .f /Y7SS
safety so long as they pay blackmail to the ^V*^»
or local brigands, whose numbers are .continually ^bemg
recruited from the discharged soldiers and escaped
^Good 'roads, to act as [feeders to the rail and L water
ways and so reduce the cost of raising and marketing
country produce, are an urgent econo ™ c »fV e ^
present roads are secondary to rivers in the system
of Manchurian communications.
(6) Rivers
In general Manchuria is well [provided ^^ith navja^
rivers ; it was estimated in 1901 1 that 20 000 boats ot
some seven to fourteen tons burden ™™&&££
the river trade, and the number must have greatly
in TT:t^Z e ^l^y oi Manchuria is the Amur.
• Alloug P hTt s sometimes said that of the whole course
only 450 miles are navigable by stumers of 12 ft.
draught, it appears that steamers of 16 ft. draught can
proceed for 150 miles above fjf^.=ffiS
though in general of fair depth, the > river **^P*£
by shallow bars which limit ^f^°^Xt^
that town. Nevertheless, small f^S^Xance
of 200 or 300 miles. The mouth <*^J™^%&
lw « nT1 rl hanks • aoods are unloaded at Marlins* cuiu.
g£ rytn^thelort of ^^M^t ^
The river is frozen from November to M*^ D ™
during the summer months ,s , servxce £**£«£
the Ussuri, is maintained by the Amur ot t •
both above and below Khabarovsk. Jome twenty
VPflrq affo a fleet of 45 steamers was alreacly prying.
At the same time i? is admitted that the great expecta-
£om ^ZZlyZL,ined of the economic miportance
1 Hosie, Manchuria, p. 239.
26
ECONOMIC CONDITIONS
[S o. 69
of the Amur ■,„ o LS °" 69
fU Of Ie tt t aVenU6 ° f trade have hardIy been
eastern fr^^n^L^f^ur, the Ussuri, on the
PortanceasameanVofeoi a '- 1S ? f co ™derable im-
£ 01 * its confluence nZ m £ mcati ° n ' It is navigable
Hmka (Khanka) a .S^h 7 * U P <*> Lake
regularly navigated bvTtp* ^ ° f , 300 mil ^ and is
the ^ M • those bal^fi ^ ^ 2( >0. Next,
a n nd .° Ma nchuria and 1 C l Udes the mos * fertile
flourish mg towns of Harbin ^ banks stand the
*h £ow -dr aught launches for^ ^ * ^^ by
sW, T ral Ru ssian l7a° miIes U P to Kirin,
^a mer8 between Harbin a n^A Cllmese c °mpanies run
the river i s only useful 1 dAmur P orts - Above Kirin
Penod NovenaberXr l^L^^^cation during the
a road for sledges. OflheSV* 1S fro ^ and forms
whit Tf S £ ar > and byVeS i"^ 8 and smaI1 steamers
while the Hurlca, whiei J Craft A c o^derably farther;
bol Uen ^ at ^^g^i/S 8 Ni ^ta and has its .
Wn\ T ? e ^ r »> S tribnfl m , navi g a ted even by
460 ^T eStern b °rder oFM? a 7 ° f the Am ^ on the
^^^-S^^Z. is na * fOT
Shan^t ^^^r t Pan ' iS
, i*tC*utlZV? rm ^ nilles from its
drawing 8-l ft. </ Zt^t^T^ * stea —
the oSL JU / lks for no more t £ aS Antun S only, and
of wS e ,V° r * he KnhTtJl "" an , other 50 m ^s, is
It So 1 Chief mar ts are at a 1 the Cha ngpai-shan,
of ?he K T J eS the to ^ of Wi;wn n f and Ta tungW
is ice-bo^T Han ^yo V vol?J G r hu) > the terminus
of March ? ^ the £<? tf tf£ A ? Un S- The river
The l7ao\ nd f Iiab] e to flood7? m T e f to the mid <^
churian Jw far awa F in th ! V& and A "g^t.
Manchuria] RIVERS 5 RAILWAYS 27
The Liao itself has been made navigable for ocean-
going steamers, drawing up to 17 ft., as far as New-
chwLg, a treaty port about 14 miles from ^e mouth
Beyond this the river is available for junks to ' Tiehlmg
or even Tungchiangtzu, a distance of some 200 -nuks.
When frozen during the four months of winter, the
Liao river forms one of the chief highways of the
country for cart traffic.
(c) Railways
The Manchurian railway system consists in general
of a line running north-west and south-east through
the northern provinces, joined by a ^line ^m Haxbm
to Port Arthur running north-east and ^Xr
through the southern. From Moukden, on the. latter,
lines branch south-east to Antung a ^d s mith-wcst to
separately the £»*£. j^- ^taUw^e
SLTSemE** and theWh Manchunan
Hsinminting, to Moukden. This hnew
partially opened as f^^'J^i ^fhalf . lies
miles, but only about 265 miles, or j
in Manchuria. From K°*P"^_ B b ™» c £ er branch
long, runs south-east to Ne^chwang^ An ^
seven, miles ^ "^^jSiT^h Hiilutao, where
25 miles south of ^mcnuw D 41). These are
a harbour has beea bu^^^V^ to
apparently the °*y Jfe^^ presumably light
fnTstri^ Ka0kia °' ^^
28
ECONOMIC CONDITIONS
[Ho.€9
Lienshan and Chinchow, with Tienkiaosang, a point
on the coast north of Hulutao, and another running
™??r n I )ar Chincllow to the Nanpiao coal-mines on the
Uimh frontier. The latter may be connected in some
way with a Chifeng-Chinchow project which forms
part of the Chihli Extra Mural Railways scheme. At
one time there also existed a light. railway running
north from Hsmminting to Kangpingsien on the Liao
river not far from Mongolia.
The line from Hsinminting to Moukden was originally
Duiit by the Japanese as a light railway with a gauge of
f 2 *i S^aa g the War with Rus sia, and was sold to China
4° r i ?? m virtue of an agreement concluded on
April 15 and ratified in November 1907. By this
compact half the cost of the reconstruction of the
S C ?Q°9 n nnn lme east of the Liao rive r, a s™ namely
oi a*«,uuo, was borrowed from the South Manchurian
Railway Company in the form of a five per cent, loan
w^CES^ the property and receipts of the
a J™ ^°lf- S h ^ a Rail way is built to the standard;
S%°H ft - 8 * m ' In 1913 {t Possessed 123 locomo-
P»rfoW dli P assen ger coaches, and 2,936 goods wagons
capable of carrying 59,795 tons of freight. Additions
62?554tons ^ U increased **"> capacity to
a T^t + ? P + ita ln f nS e raUwa y> which is Anglo-Chinese,
3 4Q?7n7 t0 49 > 971 > 571 dollars. In 1912* it carried
eaSr P assen g er , s and 3,450,393 tons of goods,
and T fi S 8?n r oIo nU f ?! 5 ' 257 > 59 1 dollars from the former
^cem+;t' ^io^o^ 8 from the la «er. The total
3 820 6^7 ? n 13s1 !?' 638 doUars > and ^e expenditure
beW28Qs arS ' ■*?* ratio of expenditure to receipts
cent 8 2m? P er . c f *• In 1913 the ratio was 36-29 per
^"'at^o^Sf^ ?? 13 ' 841 '"1 dollars and expendi-
to 52*37 ™ 'I ? d ° UarS - In 1915 ^e ratio had risen
e^K^,^^ ^000 dollars and
in { ^vtu^oi h inZr aStem RaUwa y wa * originally built
6 ° f an a S reem ent concluded in 1896 between
Manchuria]
RAILWAYS
29
the Chinese ^^Z\Tt^^^^
By this a company was to be > lormea wi 5 hinese
5,000,000 rubles and none but ^XncZuli (Man-
shareholders, to build a ^JJ^S'SSSrt with
churia) on the Siberian to ^ tOT W^_^ frontier of
the Trans-Siberian Railway), an d^^X Yi adi .
Manchuria, near Suifenho with ^^uat^
vostok, a distance of over 900 rmles xne
be constructed within si x years to a ga*g ol o ^
same as that of the Siberian Railway. ^^L, of
years the Chinese Government ™. *°^™ S^ -with
purchase on payment of the actual ^st ^
the debts and interest due on ^,^2 opening of
after eighty years from ^^& to l2L» g the
the line, the railway was automatically
property of the Chinese Government
By the Convention o March ^J^^ i& f or a
the Kwantung peninsula wer lea ed to ^^
term of twenty-five yg^^^de at thesame
mutual agreement, f™™ 1 * • : of an extension of
time for the construction by Russia 01 _an thward
the Chinese Eastern Radway from. Hagrn s ^
to Dairen (Dalny) and Port Arthur. ^ Tsit .
acquired administrative °<»^^™a the right of
sihar as lying within the railway one « a | rf
exploiting all minerals ^^^J^U men and
the railwty, ^m^a^^^^^ tariffs
officers on the lme, and of imposing a
for or against goods and places. Septem-
By the Treaty of ^^^^K all Russian
ber 15, 1905, Japan obta^heo«^n changchun
railway rights m ^nchum « ^"Vrbin, alt hough
•(Kwanchengtze), 152 miles soumi Ruggo _
the railway zone actual « ^ durmg ^
Japanese War ended at C^g^ T^ty of Ports-
farther south. The P^V^f on December 22, 1905.
mouth were recognized by Chma ^ ion of the
The Manchouh^uifenho hne forms ^.^
Trans-Siberian Railway. I y tnus d 5 itgelf for
territory the Russian Government renev
30 ECONOMIC CONDITIONS (W
the time being of the extra cost which would have been
involved in the construction of an alternative route
(now existing as the Amur Railway) 342 miles longer,
ana escaped important engineering difficulties in con-
nexion with bridges and tunnels. Work on the Chinese
pastern Railway was begun in the spring of 1897 ; the
?S? er ™ P0 ? 10U Was °P ened in 19 °1> ^e southern in
I , ooi n ng ? h of the M anchouli-Suifenho section
*o m a ? d of ^at from Harbin to Changchun
a T S ' ? a l km S a total of 1*073 miles.
| PI iw -V s con templated, some 50 miles in
*5£ \ J 0m . Nm S uta > an important town on the
M Z ™ ^ e f stern Ki ™, to the main line at
rZr^ 6 v also a Chinese P r °Ject for a private
KSSX eaX ^ ^^ to ^^abont
Co^ e ^ riginal ° apital of the Cil inese Eastern Railway
ftZt^-M - already Stated ' 5,000,000 rubles;
TL P rnT r Plta 3 1S not asc ertained, but is Russian,
most ont^i C ° nstructi on is variously given, but the
^ JulTl \tt^ G F^ S the cost of ^e whole system
the 2L 19 ° 5 J f 4 50 >700,000 rubles/ and that of
Kwrtfi to- Japan at 92,700,000 rubles,
remanSniS 'T ruWeS aS the cost of the portion
down to Juh 1 *iZTVT tTo1 Further expenditure
54^00 Hon 7 V 9 J°' had brou ght this figure up to
540,300,000 rubles.* However, about MCOOoV
Original cost
Interest to July 1, 1903 '.
Total .
Less sum paid by China'
Rubles.
. 375,000,000
. 54,600,000
. 429,600,000
• 70,000,000
Im ~. maintenance, and in- 359 ' 60 °' 000
terest for two years . . . 91,100,000
Total
450,700,000
2 D ' ' • *o"»'W,000
Manchurial
RAILWAYS
31
rabies is usually taken as the actual cost of construc-
tion of the present Chinese Eastern B^™*-,^
In 1912 the railway carried 1,660,533 pas* ,engers
and 3,390,773 tons of freight, receiving , a _ revenue
of 4,322,247 rubles from the former and of l*^ 7 **"
rubles from the latter. For four years the total
receipts and expenditure in rubles were :
19 08 1909. 1910-
Expenditure . . 18,403,787 16,251,270 15,905,520
^eipts . . 14 941556 15,536 309 WgjjM
Profit or loss . .-3,462,231 - UZJOJ. *, >
Approximate ratio of
expenditure to re- ^^ 105percent . 91 per cent,
1912.
30,000,000
22,000,000
-8,000,000
136 per cent.
Connected with the Chinese Eastern *fj.^™$ t
not forming part of the system, ^^f^ZeoiAna
Railway, a'metre-gauge line >U ^^ES£g
This railway has a capital of 284,75» taeu,
hands, and* the construction which began m bep
tember 1907 and was completed in August 19Uy,
^Itf South ManckurianBailway Co, was consti-
tuted on June 7, 1906, by ^^^fS^EK
Japan, to operate the P^^^SSto^S^
Railway taken over from the Russians, vn l ^
Antung line built by ^^^^^^^A
converted in accordance with the «e^g
of the previous December various b ™ e S' under .
number of mining, industrial, and commercial u
takings connected therewith. j }
The main line from Changcnun ^o ^ c
taken over from the Chinese Eastern .X^mg ^
is 439 miles long The original ^ gauge «£* ig
apparently been altered as the entire system
fo 6 tr^dSul/lo' suHL' Korean main line,
69
3 2 ECONOMIC CONDITIONS [wo.
Sj^lsnV 8 ! COnnected 1 at Wiju (Gishu) by an iron
a t?l:?fi ?• l0ng ' 0verthe Yalu - Jt ^ 162 miles long
7™? °P e ned after conversion on November 3,
thP a*™ TTf™ n a PP ear s to run from 1908, and
line ?t ° f ^ S ave China the right to buy the
line back at the end of fifteen years.
mnin e S.o are rp5 ree minor br anches connected with the
N?wW ^r 6Se are the Tashihkiao-Yingkow (Port
ArtZrT g) £?' -, 13 * mUes •> th e Choushuitze^Port
nectTH w^Vi, i^ lleS ' b ^ which Port Arthur is con-
f rom slv + airen Railwa y ' and a line of M± miles
the ^ us htn a oT' * Stati ° n J' ust so ^h of Moukden,to
orLS S I 1OTeS east of that ^wn. All three were
Mav X nar . r o w "fange lines and were converted in
foSeneralt,?ffl ^ bran cnes, apparently not open
of ]ffi£L ^raffle one serves the Yentai colliery, south
bv the ra ?w fl hlCh 1S tolled like those at Fushun
west to SiS? Com Pany ; one runs from Suchiatun
cTrse of tw w aPT l and a W mlIeS farther down the
thriav nf T^ 5 ^ ° ne C ° nnects Lios nutun on
line 7 Tallenwan opposite Dairen with the main
110 m°ile b s r w eS - T iU C0UrSe of construction. One,
th mat 1 £ ° ?*" from Ka ^an, a station on
cheng Thelt A ° f Cha ngtu, due east to Hailung-
Kirin is iniS ? * • hat an extension northwards to
from thVmZl?^ f S,\ The other is *<> branch off
north of Soukln ^^^Vngkai, a station 120 miles
and to run to Ph? \^T en Cnan gtn and Changchun,
a disw of 5 2 S T -° n the ^ngolian border,
another 120 mifp, 2 \ h T g continued thence for
for a loan res^ecW ^. to T . Tao nanfu. An agreement
China and S^n 18 ^ Was concluded 'between
wasbeg^^^
ThftoSlenSh of+v,° W ' S ?T 5 ° miles to *** east.
South Manchurtn 4S w main lme + and inches of the
ncnunan .Railway open to general traffic is
Manchuria!
RAILWAYS
33
680| miles, all of standard gauge. In 1914 the rolling
stock included 255 locomotives, 190 passenger coaches
and 2,903 goods wagons. The capital of the company
is 200,000,000 yen, in a million shares of 200 yen (±,^U). ui
this sum, half is owned by the Japanese Government,
while of the remaining half, the issue of which i was con-
fined to Japanese and Chinese subjects only 20,000,UUU
yen has been subscribed, and of this only 16,000,000 yen
is paid up. The company, ^'£?"™%J^*^
cent, debentures to the value of £14,000,000 inl^J
These are guaranteed by the Japanese Government, and
£200,000 worth have already been redeemed. Ihe
following table shows the capital expenditure , ot the
companj from its inception up -to March 31, , 19W , , *
does not include the value of the lme and plant taken
over from the Chinese Eastern Railway uo. .
Railway
Steamships
Electric plant
Gas-works .
Harbour and wharves
Workshops ■ ■
Hotels
Buildings .
Land
Land improvements
Collieries
Total
Yen.
70,299,781
3,385,357
4,833,697
1,406,540
8,661,793
5,915,122
1,328,567
9,699,523
. 8,404,815
2,619,697
10,498,592
127,053,484
During the year ending ^M^^K
ManchuSan Railway yarned ^f^^Zunte^
6,477,325tons of freight ^hex^y i> 7,913,948
to 22,275,132 yen and ^P^eipts of 35-52 per
yen,givingaratioofexpendrtu £ were
^^y^^rai expenditure 35,249,844
yen, the ratio being ,834 per -oar. .. ^ ^ being
The company enjoys a prrvnegp f ^^
allowed toimport '^^f/j.Zkin (transit) charges,
duty, and m be ingreiiev 1915 the leage
^Z'SSSnLSSL Railway was extended to
36
ECONOMIC CONDITIONS
[No. 69
already in course of construction, and to be in con-
nexion with the ice-free harbour of Hulutao, just south
of Chinchow. Negotiations took place in January 1910
and a preliminary agreement was reached, but further
discussion was suspended owing to representations by
Russia, that it disturbed the plans for the defence of
her frontier, and by Japan, who objected to an asso-
ciated proposal to neutralize all Manchurian railways.
Late in 1913 negotiations were in progress between
China and. Japan for the construction by the latter of
a network of railways in southern Manchuria, but so
far nothing appears to have come of them beyond the
agreement of 1915 for a loan in respect of the Shihping-
kai-Chenchiatung line.
On March 28, 1916, an agreement was concluded
between the Chinese Government and the" Russo-
Asiatic Bank respecting the construction of. a line
of about 460 miles from Harbin, via Mergen and
Aigun, to Blagoveschensk (where it would connect
with the projected and possibly already completed
branch joining that town with the Amur Railway),
and also of a branch from Mergen to Tsitsihar (or _
presumably Angangki), a distance of between 160 and
200 miles. For the construction of this line a loan of
£5,000,000 was to be floated after the conclusion of the
European War.
The railways of Manchuria, the total length of which
appears to be at present about 2,180 miles, are inade-
quate to the full development of the country, but the
more pressing need is the construction of roads to act
as feeders to the lines that already exist. There is no
doubt that the production of the provinces could be
greatly increased if the means of transport were
improved.
{d) Posts, Telegraphs, and Telephones
Posts .—The Imperial Chinese Post Office grew up
under the Imperial Maritime Customs and was formally
recognized by an Imperial edict of March 20 1896.
Manchuria] POSTS AND TELEGRAPHS 37J
An order was passed on May 10, 1910, that the Post
Office should be placed under the Ministry of Posts and
Communications, and the change was actually made
in May 1911. The Post Office supplements the Ichan,
or Imperial Government Courier Service, and the
Minchu, or native postal agencies (hongs), which now
transmit and receive, through the Imperial Post, all
mail matter entrusted to them.
The head office of the Imperial post in Manchuria
is at Newchwang, and there are branch offices at
Chinchow, Wafangtien, Kaiping, Liaoyang, Moukden,
Changchun, Kirin, and other places.
Moreover, Japan in the south and to a more limited
extent Russia in the two northern provinces maintain
their own post offices and exercise postal rights.
In 1908 Japan made proposals for a postal conven-
tion. She claimed the permanent right to carry mails,
without reference to the Chinese Imperial Post Office,
on the North China Railway between Peking and
Newchwang and between the Japanese post offices and
other Chinese railways in Manchuria. Further she
required China to treat her own mails to Manchuria as-
foreign, paying the Japanese railway transit rates in
accordance with the Postal Union tariff. Lastly, it
was demanded that Japanese mail steamers and
launches should have the right to ply on Manchurian
inland waters and to charge Postal Union rates for any
Chinese mails carried. The Chinese Government could
not assent to these demands, and the negotiations tell
through. -if
'Telegraphs.— -In Manchuria there are 10,288 miles oi
telegraph owned by the Chinese Government, ine
principal line is that from Shanhaikwan to Aigun,
which connects with the Russian system at Blagove-
schensk and links up Shanhaikwan, Newchwang, liao-
yang, Moukden, Kirin, Petuna, Tsitsihar, Mergen, and
Aigun. From Kirin a branch runs east to JNmguta
and thence south-east to Hunchun and connects with
the Primorskaya system and Vladivostok, while from
Liaoyang another line runs south-east by the Motien-
38
ECONOMIC CONDITIONS
[No. 69
ling pass and Fenghwangcheng to Antung and the
Yalu valley.
By a convention made in 1908 Japan agreed, in
return for a payment of 50,000 yen, to hand over to
Uima all the Japanese telegraph lines in Manchuria
outside her railway zone and not to extend her tele-
phone system without the consent of China. China on
+ +? arfc J agreed for a period of fifteen y ears t0 P lace
at the disposal of the Japanese Government special
telegraph wires to be worked by Japanese operators
between the treaty ports, Antung, Newchwang,
J^iaoyang, Moukden, and Tiehling, and the Japanese
railways. r
Telephones.— Harbin has a telephone system under
the control of the Chinese Eastern Railway, and
^hangchun a system controlled by the South Manchurian
railway. In southern Manchuria 14 of the principal
towns have telephone services. Dairen has a trunk
communication with all places in Manchuria where
there is a Japanese post office. There also appear to
be other trunk lines between Zingkow and Liaoyang
and between Port Arthur and Tiehling. ..
(2) External
(a) Ports
lwl V Tinci V a \ Ports of Manchuria are Dairen,
wTi w g ' a - nd An . tung ' Dairen is °y ^r the most
£S Z S ' °™ g t0 ltS bein S °P en a11 the year round
o fanv Stt SU P T en0 l aCCOmmodation ^ offers to shipping
and LI T N ^? hwan g is ice-bound for several months
certa n IT i 1Sta ? Ce UP the Liao river ' w hich presents
Yalu wS T *? navi g ation - Antung is on the
oicoml^V 8 ^!- t°T n m ™ ter > a "d only steamers
(The W., f J l r ght dr ? ght Qan P ass *P to the town.
KunTS A P ;tXl) f °V 1913 ' 19W ' Ld 1916 wiU
.. Dairen (Russian, Dalny; population in 1916 4fi niO)
is approached" through a channel sufficient?? ^ widf and
Mancuna] TELEPHONES; PORTS 39
deep to admit steamers ^ any time of the day ^
night and at any state of the tide. / r0 ^ n JX
eastern gales is provided by stone and concrete break
waters, behind which there lies an expanse of 800 acres
of smooth water, which is continually dredge d. ine
port is provided with granite wharves at right angles
to the stone-faced foreshore, capable of «^^™J
granite-faced concrete, at which steamers drawing ^p
to 22 feet can be berthed. These *^^ n °ffi
less than 350 feet wide, and are lighted with. lect*
light and provided with steam cranes wh e the bou
Manchurian Railway runs alongside them ±ner
are thirty warehouses, covering 25 acres, available
'Tiren is provided with electric light and ^ramways
waterworks/and a modern drainage ,^stem an d
the central parts the streets are macadamized jukl
lighted. Since July 1907 it has ^JZ^toAhe
imports are only liable to duty on passing out
leased territory. u . j ;„ 1916 at
The exports from Dairen were value L in ^
£9,101,375, and the imports at «£"'*£ •
same year, of the tonnage , entermg and ^ ^
83 per cent, was Japanese, 7* Vf™ n tions be i n g
under 5 per cent. Chinese, that of other dot
negligible. Dairen is a general emporium ±or al
monies exported from and imported into Man ^
and the South Manchunan ^ lw a %i dat ion en-
favourable rates and lin P r0 ^ a ? tract trade thither,
deavours as far as -possible to a ^ f^ observer 1
It has, indeed, been suggested by a comp
that the future of Dairen depe ^ £^£ than
development of the territory a ^ g ^^ S view,
on thediversioh of trade from oth ^r ports Ih^.^
however, is hardly ^^^ the European
though the conditions arising througn *u r
War may to some extent vitiate these as a gu
the future. ' - „ . r> 1286
■» Quoted by Lawton.^^ea of tU Far East, p. 1286.
I
"if
'! i
40. . ECONOMIC CONDITIONS |>69
So ., 1 .??!? as p Rus sian control lasted, the commercial
possibilities of the port and railway were neglected,
ihe Japanese, however, have taken pains to develop
them to the utmost. '
Newchwang* (population, about 70,000) has been
™t Y K? rt T Ce 1858 ' Compared with Dairen it
possesses the; advantage of having been longer estab-
onll ? n . ^ bemg conne cted with the interior by two
S?" 1 ^^ railwa ^' but i4 is handicapped by
S lce - ^ for four months in the year and by its
of whtTi \ rt r en mileS U P the iiao ri ™r, the mouth
of r™ obstruct ^ by a bar. -In 1909 the Chamber
oi ■.Ummeroe ,r ecommended, and the authorities agreed
• tonLalJ - aX ° n im P° rt s and exports and a small
to b P £ f °n incoming vessels, the funds thus raised
channel dred ging the bar and embanking the
we?tTf C M? n f iS - a V °r t0i § eneral trade f or the south-
Tnd c?e fl ^n ^ m - In 1916 ' of the tonnage entering
Brftish 3' 4 /iP er ° ent - Was ^Panese, 32! per cent"
nations Sf 5 * P< ^ Cent Chinese > that of other
foreW^^ Tbe Sports of
anTof na W 16S *% 1916 were valued ^ £1,534,046
for the s f2 v C ° mm0dltieS at *1.136,200 ; the exports
at 1 e y ear were valued at £2 349 582
raw'rlte? ?" -"*** - ^^^^Ifi^ntial
now bL t ad ' n , f aV ? U l ° f Dairen - Th e rates have
tiolte toS- T ' h ° Ugh the y remain ^propor-
tionate to the&stance travelled. . ■ '
a tract of land between the eastern extremity of
oncete^on e tr s lrbur. th ^ ° ld New ^wang City, said to have
on a small tribuL" ^ t L T W ^ ™ im P^nt town 30 miles inland
from the mouth of the rivpr T'a + ^ ewchwa ng itself is now 14 miles
W, sometimes called IVn* a? th t p0rt has been.moved to Ying-
Newchwang, however 2S ■ N ™? hw ™Z> 10 miles lower down.
Customs Station yL S?< * he ? eaty Port an <* Maritime
churian Rai lway runs toThT I f ° Pei l to , trade '• Th e South Man-
the North China y RXav rar, t S m ^ ° f the Li ™ ** Yingkow ;
to the port. Ce7 as ^ Newehwang, but has been extended'
Newchwang. " a Semeeof J un ks between Yingkow and
Manchuria"]
PORTS
41
Yingkow and the Niuchiatun quarter has been included
in the South Manchurian Railway zone sincetne
construction of the branch from Tasbihkiao to New-
chwang; a fact which will probably enable tne
Japanese to enjoy in future an increasing share m tne
trade and shipping of the port. . _ .
As Newchwang is closed for so long a period by ice,
an ice-free harbour with depths of 18 to 30 It. has
been constructed at Hulutao between Shanhailcwan
and Kowpangtzu ; Hulutao is connected by a brancn
with the Peking-Moukden main line. _ _ _
Antung (population in 1916, 32,700), situated some
25 miles up the Yalu river, is the trade centre of a dis^
trict extending north-east to the head-waters of the
Sungari, north to Hailungcheng, and south Jo the
timber mart and port of Tatungkow, and mcludmg
towns on the Korean side of the Yalu basin. Antung
is connected with Wiju (Gishu) on the opposite side ^t
the river and with the Korean Railway by anew ^twelve
span bridge of steel ; it is in railway communication
with Chemulpo, Seoul, and Fusan in Korea and with .
Moukden in Manchuria, and steamers run regular y
to Chefoo, Tientsin, Dairen, Chemulpo, Fusan, M031,
Kobe, and Shanghai. Tn^amei
' The largest steamers have to j ««*" «*^S
Island, at the mouth of the river, and only those dmwmg
less than ten feet of water can P« 'jjj^
Goods from ships lying ^\^ Tas ^g^u!l the
conveyed up the .river by lighters, ^e the J.iao n
Yalu is ice-bound for four months in the /^ n e
A commodious tract of land with a rive^rontage
is being prepared to .serve .as ^^^^^
foreigners, but the Japanese aWy ^ c ^ ontrol the
advantageous position. Seeing that zn y
railway ^ommunicatgns have ™%££m &»
bourmg country of Korea, ana n y lumbe ring
Chinese to ^^^l^^L expected that
of the Yalu region.
42 ECONOMIC CONDITIONS [*o.e 9
no T £t C fi ef ^ ° f Antun § is in 8ilk and timber;
throu/h itS nt P8r C ? nt ' of a11 the timber P assin g
at t It . ! C T meSe Im P erial Customs is handled
ZrUnf Tl' In 1916 the total va ^ of the im-
£lX Lt ntT J n S was £3,352,300 and of the exports
and n w' J^? Same y ear ' o£ the tonnage entering
cent cZ g ' ^ 6 J eT Cent - was Japanese, 26-4 V ev
b^^SiSl 28 Per CGnt - Bri »^o other natiL
deSibTaWe^P- ^ ancWgeS of Mancliuria are
(b) Shipping Lines
twict 6 we P tl 1 v M w ChUrian T . Railwa y maintains a service
Son vtj £ et T ei } Dairen and Shanghai. The
at DaheJ US ft e ^ aisha h f s three re S ular ^es touching
Kob TweelX fr r + ? 0k 1 ° hama fortnightly, one from
ports monthW^T^n^ from Kobe ™ Korean
three sTvW 7' The ° sa i a Shosen Kaisha also has
* Yokohama WnT + f mg Dairen and Japan-one from
and tftfaiS f? ght l?' ° ne from Osaka twice a week,
tionef line "I eTch ST^/^ The first " men -
is a so-callpH < t ■■ two Japanese companies
subsidy fLm l^'T^^ ' Hne > and rece ™ n0
mainine W li™ Ja P an , ese Government. The re-
Japrefet^rmenfeo 8 ^ ^ S* * t0
company Car ries 0na ^^^^^^
rf N "te2^ Shan f a * % a service
and Tientsin JSy thiS ^tv ^ f ^ LUngk ° U
tained by the ail 7T ay " . T , nese lmes are mam-
Company and the PM Co lx I ? me 1 rcia l Steam Navigation
Company both <S ln \ Me rchants' Steam Navigation
Yusen Kaisha hn.r^ COncerns - Th « ^ppon
Kobe, and Osaka ^^ S6rvice to Shimonoseki,
the A £a NSnV^ ? hangllai ^ a ^rvice of
na Navigation Co. twice weekly, and steamers
Manchuna] SHIPPING; TELEGRAPHS; LABOUR 43
also run to Chefoo daily, to Tientsin three times
a week, to Dairen twice a week, and to Kobe once
a fortnight.
(c) Telegraphic and Wireless Communication
There is a submarine cable between Dairen and
Chefoo, the joint property, of Japan and China, each
country operating its own end. A second cable
connects Dairen directly with Sasebo on the west coast
of Japan. ■'■''■ ~ . .
Oh the headland of Takushan opposite Dairen
across the Bay of Talienwan, there is a wireless installa-
tion with a day range of 650 nautical miles and a night
range of 2,000.
(B) INDUSTRY
(1) Labotjk
Though little more than a fifth of the total area
available for cultivation in Manchuria is actually
cultivated, even for this the labour supply is inade-
quate. According to estimates which are now eigh-
teen years old, some 30,000 labourers were y arly
imported from Shantung, returning thither after the
harvest.' There is also a large immigration ^from the
neighbouring province of Chihli, but, " th^ *™>
grants travel by land, there are no means of « jtimatmg
their numbers. In 1907 Mr. Yamanobe (see below^
p. 66) put the permanent yearly emigration from
Shantung and neighbouring parts at no .less than
20,000, a figure which, if correct, would account lor
the admitted increase in agricultural pr oduction
There is profitable employment n Man ™ ™
the land, and in mining and connected industries lor
V Petty trade. «doJ«£ £= ^ ^£%££i
tr^lrtX^^i DecembeVand stay in Manchuda
till the end of March.
44
ECONOMIC CONDITIONS
[No. 69
a great deal more labour than is obtainable. The
mines and connected industries round Moukden employ
22,000 men, of whom 20,000 are Chinese and 8,000
actual miners. The ordinary labourer earns about
30 kopecks or 8d. a day. 1
The South Manchurian Eailway Co. has the manage-
ment of 5,488 acres in the railway zone of the leased
territory, and of 40,322 acres along the lines outside
it ; this land is reserved for Japanese settlers, and the
company propose, by the building of dwelling-houses,
schools, and hospitals, to do all in their power to
encourage the development of its resources.
(2) Agriculture
In Shengking (Fengtien) most of the arable land lying
7qi o^t 7 reach of a railwa y is already cultivated. In
lyi^S Mr. Lawton estimated that ten million acres were
under cultivation, but of these only 5,835,000 acres were
sufficiently near a railway for produce to be marketed
at a reasonable rate. Of this area 150,000 acres were
under beans The provinces which have most arable
land [favourably situated but still awaiting cultivation
are Amn and Heilungkiang, since the Chinese Govern-
ment, afraid of complications with Russia, long dis-
couraged immigration into the northern parts from
tUe more densely populated south. Moreover, much
f nr^i m r6 f i0nS 0f Kirin and Heilungkiang were
sSS« y f S + t rYed aS an Im P er ^ hunting fround, and
settlement there was prohibited. It wal estimated
Kirin I id h ° n l J ha ? the area ca P able of tillage in
basS s of t b £ en Q Wg . ht Under cultivation. The fertile
immenselv toZ?" **£ N ° nni Sh ° uld devel °P int °
already cTmL 1n+ r n^ P^^ed. New land is
^^^S^^t^^^ Bergen and
only a quarter of whic^^X »T ^ ***** '
It is estimated that hi ?Qnc , d f fe w jears ago.
i ,m.. , ° 9 onl y 8,320,000 acres
Wh ^™>Manckuria and Korea, v . 128.
Mancimria] LABOUR; AGRICULTURE 45
in Manchuria were under cultivation, and the average
harvest was divided approximately as follows : l
Bushds.
M^r g H millet) ■■•■•••■: iSS?
Millet (spiked) . # • • • • 3 3 ; C95 ; 375
WheTt '. ' ". i '. '• • • • • • 30,420,125
Barley, buckwheat, Indian corn, &c. . . • • • 27,194,500
177,210,875
The following forecast of the future of Manchurian
agriculture was made by Mr. Putnam Weale and quoted
by Mr. Lawton in 1912: 'Chinese agriculture in
Northern Manchuria will soon not be merely confined
to winning over to the mattock and the plough the
whole of these 30 million acres [on the Sungari and
Nonni], it will steadily invade the vast area of north-
eastern Mongolia— the Inner Mongolia of the geo-
graphers—and will bring all the rich grass country
lying on the east of the Gobi desert under painstaking
cultivation. Already it is calculated that the Chinese
agricultural belt is advancing on the Mongols and
their wandering flocks at the rate of thirty h or twelve
miles a year. In fifteen or twenty years the spade ana
mattock will have captured millions of acres and bound
them tight to the Chinese system in bounteous crops ;
and much of the harvest of these fields will be available
for export. Thus a wheat-belt, contemptuous ot
political and geographical labelling, wil grow up m
these latitude? to be almost as remarkable as the
Canadian North-West or .the ever-expandiflg TOj
Siberian grain districts ; and this belt will be exploited
in times of stress by those who, without P« f ssing
any legitimate right of eminent domain have their
moneybags lying ready and their soldiers in the
immediate background.' 2
(a) Products of Commercial Value
Oil-seeds.-The chief exports from Manchuria are
soya beans and their products, bean-cake and bean on,
1 Lawton, op. cit., p. lloA
46
ECONOMIC CONDITIONS
[HOJ
cttomraftL^r^ S r ° U S h the Chines ° Maritime
Picur f l 33 f l h fT Mancb ™ a n stations being (in
Beans
Beans and peas
Bean-cake .
Bean-oil .
1913.
4,220,699
4,253,019
13,608,742
742,400
1914.
6,571,762
4,092,963
12,072,685
736,149
1916.
4,668,714
4,596,076
14,888,872
1,377,256
.«,to /rf0,149 1,377,200
VladiWok Time 8 f^™ Were aIso shi PP ed from
previous year d " A ' i d f Cre / Se of 28 P er ce ^- on the
Of thiriloonoTn ° IaGk ° f steamer accommodation.
England HoZd T^ *° Euro P e to feed mills in
wasVessed Si, D /*™ark, while the remainder
and Lan oatFshint^ % J ^™> wWe bean " cake
quantities sent VnF? to J Euro P e and America. The
In 1916 the re we Z f^T* appear to be ™J sma11 -
and a We milTf Ir ^r Japanese be an-mills in Dairen,
been ^^1°^^^ ^ *" """^
In PViiVm „ j t vt51I1 on m California.
make ^ or^TJ^ S ° ya bean is lar g^ used to
sumption in Chin a ^ e ' f? article of universal con-
called W used a,i S ° v k i! nd ° f flour ' and ^ P aste
tables. B y ean^cake L. f llSh W j tb meat ' fish > and V
cheaper and mor e n «tS ? ^ as a cattIe f °od, being
and as a fextil? zer ? nUtritlous th an cotton-seed oilcake,
Bean-oil is nsprl i^. +i,
garine, and can£ wtnTfi^^ ° f soa P> mi-
semployed as a suW,W? refined and deodorized it
oil, or even W the *rW t • f ^^^"^ed oil or linseed
t ? be the best tgefc^f B ° f f?* oiI ' and is said
also used in the mannfIo + 0r , makm S P aints - Jt is
and lubricating ons^df^ ° f ™ ish , printing ink,
tio^f or ^f.^^SS^T. ba ^ of a eompc*
^^^^ ■« ***
^ ^---The most important cereal is the tall millet
anuria] AGRICULTURAL PRODUCTS 47
or kaoliang: The grains are boiled and eaten as
food or distilled for spirit ; the stalks are woven into
mats and used for fencing, and bridging and to form
the walls of houses. Spiked millet, maize, and wheat
also bulk largely in the export returns, and are used
for food. The following export figures for gram
handled at the Manchurian ports or customs stations
afford an idea of the relative importance oi the crops
(the quantities are given in piculs) : *
1913 ' 1914. 1916.
K-lian g • • • • • J« SI'S ffiSJ
St • : • • • : 'IKS -2K8" wjgg
|jr f : : ■■ • ass- isa-- aas
Total cereals . . • • ^44,729 '^^ 419 ,029
The production of wheat in Manchuria is at present
estimated at about 10,000,000 bushels, but it might be
enormously increased. Most of it is ground m the ^flour-
mills erected at Harbin during the Russo -J apanese War
Ginseng. -The most important of ^ the med cmal
plants grown in Manchuria is ginseng (? ana *J™ S ™±
frqm the fleshy root of which the Chinese prepare , a tome
medicine. The value of this is mud [^^ d ^*™
drug is in great demand, and when K^P"^*^
to China a portion was paid in gi nseng ^Toithe
in Korea, especially on the f south-eastern dopes oftoe
Changpai-shan range, and also m the forests of the Knm
province The wild root, according to Sir H. E. M. J ames
SSlO or£12 an ounce ^^X^Z^t.
fancy prices. J^^^^^t^J^
anl^rStu^f J *«&£%& S
qmmmfolium), which grows on the slopes ot the
A ^s a e°nS "The Newchwang — re t Ur ns
only, the exports being (m catties of 1 3 lb-) •
1 Cf . p. 46, footnote.
48
Chinese
Wild
Beard and refuse
ECONOMIC CONDITIONS
1913.
1,670
615
623
' [So.69
1914. 1916.
1,406 2,436
328 613
645
Fibrou Pi ' ' ' ' 623 645 5 *
true hemp Td'J^ plants S rown for fibre a™ Pte,
doth arTmanufa^ t? hemp " Sackin g and ^
hempsaLusedtn * f d fr ° m the true bem P> and both
the l&S hernn *?& and Corda S e - & leaves of
The export^ Sf aIS0 USed to iterate tobacco,
quantity of hern^ 1 ^ i" 6 ne g% ib ^, but a certain
the amounts inTn f leaVes Suifenho a «d Dairen,
1913, 279400 m IQif J T 8 bein S 451 ' 78 ? piculs in
^6acc^Next ?o\ and 196 i 872 in in-
most Iargelv inthp t i^ S , and hem P> tobacco bulks
of it is consumed^ tl e ° f the inte ™r, but a great deal
from MancCrtn ^n?^^ Tb e exports of tobacco
in 1913, 11 926 in i<£S amoun ted to 15,019 piculs
Opium LiroZ J S and 16 ' 441 in 1916-
and finds its^hS SS^ H f iIun gkiang province
lively smuggled fl « fc ii Changchun. It is so exten-
returns. There i? * 7 - }° a PP ear in the customs
opium at Dairen m-^l C T, 1 , abIe im P ort of Persian
in the leased terSv y the Use of the Japanese
Manchuria & S^Xt? " maI *"*«*» of
which feeds on the i',„ P roduce of a silk moth
found in a district X^V ( ^ %erCMS mongolica) and is
to the sea, and UoSd&T* ^ ^ ™"
Liao and Yalu rivers M* v 6 ^ est and east b ^ the
material of 61 per 2 S cll ™ a Provides the raw
as the wild silk is nseTt £ G Sll J P rod ^ed in China,
sdk of commerce l> S manuf acture of the Tussore
cocoons used in the n, a ; S °/? duces 36 P er cent . of the
Silk appears at the,n^ aCture of sUk in China.
be mg (in piculs) : g ' Tatungkow, recent figures
S{It — — ' 1913. 1914 . 1916 .
Silk, raw wild
Pongee .
Cocoons, wild
Cocoons, wild, refuse
Silk-worms, dried
. 18,293
89
168,158
371
13,403
2,746
.15,289
123
105.199
285
14,056
4,101
13,926
102
71,951
1,110
13,741
5,687
Manchuria] AGRICULTURAL PRODUCTS 49
Bee-keeping is carried on upon a commercial scale ;
some families own as many as 500-1,000 beehives.
The total produce of Manchuria in honey is estimated 1
at 2,500 tons annually, valued at £75,000, of which
a portion is exported through the southern ports.
Stock-farming is carried on extensively in Manchuria,
and almost every peasant keeps horses, cows, sheep, or
pigs. There are besides many stock-farmers regularly
keeping several hundred head of cattle, pigs, and horses.
Cattle are. not used for draught purposes, but for
dairy and slaughter only ; exceUent butter is produced
in North Manchuria. Manchurian horses are used for
transport and farm work ; they are small but hardy,
tractable, and capable of prolonged work. Pigs are kept
in great numbers, being largely fed on the refuse ot
millet distilleries, and there is an important export ot
pork to northern China. The bristles are also valuable,
3,296 piculs having been exported from Dairen and
Newchwang in 1913, 4,492 in 1914, and 3,926 in 191b.
Furs and Skins.— There is an important trade mlurs
with its centre in Moukden. Dog and goat skins are
also exported, there being special dog farms in con-
nexion with the industry. ./ i „„
Another animal product exported consists of young
deer horns in the velvet (panty). The Chinese macerate
the bone and dried skin in alcohol and produce from it
a restorative medicine resembling hartshorn. ,
Musk is also an article of export, the musk deer being
found in the forests of Kirin.
(b) Agricultural Methods
The Chinaman has little aptitude for pastoral pur-
suits, and makes small use of the vngm grass oj ifce
hills to the east of the -railway which might ^pasture
laiw herds of cattle or sheep. On the other hand, he
I : o g ne oflL moTt skilful cultivators in the world and
Sir H E M James describes how he gets up at two
in the morning, works- with hardly any intermission
Si dark and then goes to bed at once, so as to rise
E
50
i.69
ECONOMIC CONDITIONS [».
on&f^ The result is marvellous. Instead
'P anted Z J^ \™ tte ™ d broadcast, it is carefully
cultivator i,f g6S E * ^^ intervals a P a ^ ^d the
that ^ eth {" / T er Weedin §' hoein g> or irrigating, so
Wfth a Itf ° f ? mn develo P s Ji ke a prize plant.'
admiabSnT^rr 111 ^ 1118 ^ best Possible use of these
sSce a Mint 1GS ^ T^F** the methods of western
E^fe^A^ * 1 ™ and Commerce has
oeen recently established at Peking.
n,SS ^ if a ^> modern improvements in
SLe o? P th. M h t VG - entered int0 the agricultural
St ^y worked aSd^TT i'™""" The "* is Very
The result ? £ artlfi <»al manures are unknown.
peasaT 1 1 v ^ "rfmTand^^^ ** ^ and ^
cripnleshirn^ i,.i 1 to mou th. A bad harvest
ofTears t^ I ° £? ^l* he nGVer reacbes in the course
hisCthodl 5 n b6mg aWe t0 afford t0 im P rove
(c) Forestry
is ^wt; S T^" the local di ^ implies,
forest. The 2;,7 ? ° f unex Ploited primaeval
Pine, of whLhtSl S *, comm ^cial value are
willow, b^ch elm ! ? SeVGral ™eties, oak, walnut,
forest zone tere^s ?. ***?-' In the Ckangpai-shan
ference. neignt and 7 to 8 feet m circum-
*~^ to the
lumber markets, are as follo^ d) ^ the prmCipal
™^S^^,»«k«ta: (1) the Great
and the district west of it wt .f kffansai range
stream of the SumS ? % (3) tbe banks of the main
with the Cu S m ; fr ° m ? arbin to its J'^ction
range; (5^ banks of ^ °?? S ? f the L ^le Khingan
with the Sunlri rfiW^ G Hu / ka r Ver to its J^ction
sungari , (6) the western slope of the Hsiao-
Manchuria] AGRICULTURE ; FORESTRY 51
pashan range as far as the upper reaches of the Lalin
For the South Manchurian markets : (1) the banks
of the Yalu and its tributaries ; (2) the upper reaches
of the Sungari river south of Kirin city ; (3) the banks
of the Taitze-ho between Pensihu and Liaoyang; (4)
the. banks of the Hun-ho between Hsingchmg and
Moukden. r , ■
For the Maritime Province and Korean markets :
(1) the valley of the Tumen ; (2) the banks of the
Suifen river and the district between it and the Ohmese
Eastern Railway. . „ „ , ., -,
The southern forests are the more fully exploited
Some 30,000 lumbermen are said to be em P lo y ed ^
the Yalu, Taitzu, and Hun valleys On the upper
Sungari 3,000 men are employed; m the Khmgan about
1,200, and about 1,000 each in the Hulan, Lahn, and
Hurka valleys. In northern Manchuria a > great deal
of birch is cut for fuel-wood and is used on the railways
and for household heating. ■ A __. r
The Chinese Eastern Railway is a la rg e / or . es > °™
and has a special forestry department An important
concern on the Yalu is the Chinese-Japanese Timber
Co. The bulk of the timber is marketed through
individuals known as muchangs, who combme the
functions of middlemen and wholesale dealers lhe
muchangs finance the woodmen, paying their timher
tax and advancing them money for ^^^'^
The Chinese Government has formed a Bureau oi
Forestrv rpeking to promote afforestation and to
cttrSUtin^ wit! a view to P-ventingjaste, which
in some parts has destroyed much timber
The chief timber mart is said to have been ^Tatung
kow but that port has «t «££**££™
Suifenho (exports) : —
Beams, softwood, sq. ft. . •
Planks, softwood, sq. ft. .
Poles, pieces . •
13 ^
1913. 1914. 1916.
67 024 176,639 3,365,165
1785,231 1,720,550 1,480,859
_ 14,550 178
52
ECONOMIC CONDITIONS [*<>,
1913.
1914.
1916.
— 1 4,589,691 1,824,313
— 3 — 5,745
19,077
569,997
610
326
Hunchun (exports)
Beams, softwood, sq. ft.
Piles and poles
Planks, softwood, sq. ft.
Antung (exports) :—
Beams, hardwood, pieces . . ,, 7(W 0QQnn
Beams, softwood Dierpa " «if' 705 29,900 *„,„..
Planks sq ft P ' " ■• 276 > 75 9 339,047 569,997
Poles, pieces ' " ' * ' ' 6 > 3 05,744 2,899,031 5,696,386
' 18,848 24,937 64,666
' ^TrritTf. S -! r0mManChUriaint0leased '
Timber of all kinds mania
' p cms • • • 44,928 54,161 279,023
Newchwang (exports through native customs) —
Beams and planks, pieces . . lw ' „,.
Poles, pieces ' • i ' 364: 2 » 24 6
1 Value,40,384Haikwantaels. * Value, 624 Hk.taels. - Value, 4,547Hk.taels,
•; (d) Land Tenure
prSors 1 ^ 111 ! M ^ chu . ria * beld -by peasant pro-
IndthLrn^, n f^ X is the § reat B °™e of avenue,
exempt W Tll of *^ . tei »Ples is the only elass of land
S a ^ n ch n U + hol ^gs, however, pay less tax than
CWmLn ^t o^-of-the-way places pay none at all.
is 1SS? J% ° Ut * a sMlin S an acre,but the acre
accoXl I tf SSme r> n ?* ° f area ' and Varies in size
class £d t ^e quality . of the land. An acre of first-
a* acrfof ® M^rV? SiZe to an En S lish acre > but
• ^Tt^ e ^Z! &nd 1S double ' and o? inferior land
chooses r^,? n f SeCU ^ e aS much waste land as he
i ? s veil hZ y t fv. P ^ U P on ' and ^ stamp duty
SfidSy mea J^ hG 8 } en &™S Province the land is
tSee year? Cl Tl P o ys ful1 assessment after
to IJthont f« S ° f the Sun S ari ^e immigrant has
He P thente ts \th I *T *T ^ takin S U P ^ land "
pays W g to 6^ - ™ fiVG year ^ ' and ^terwards
in y the eighth nnnnfS ^ ^ T nual tax is payable
farmer can puT off '.^ *l ^ harvest > but the
when failureCp^ iffoXw d W fl^l ^
accumulate for six veai^ TwiorJ ? y fine * If arrears
Unas .Men i£ ^^^ *£»£
M^una] LAND TENURE ; FISHERIES 53
than sufficient to support the owner are, upon petition,
exempted from taxation for the year. ,' - •+ rtOT1
Manchu land is entailed, and only so much of it can
be sold as is sufficient for the site of a house or a grave.
It is often let to Chinese, who get virtual poBsesmoa
of it on mortgage for a third of its value. Rent-free
land is often granted to Manchu officials as part of
their salaries. ■„■■,■•' „„/i a land
There is in general free power of sale as regards land
in the occupation of Chinamen, but five per cent of
the price has to be paid to ^magistrate who registers
the sale and stamps the deed. 1 ....-,.
(3) Fisheries
In North Manchuria fishing on the rivers is only
carried on as a subsidiary occupation and the catch
is consumed locaUy. In South Manchuria the sea
fisheries have a considerable value Sea-bream, cod,
and hairtail are the most abundant &sn. , pmT)lov .
In 1909 some 3,000 junks, and other J^«
ing 18,000 men were engaged pern^^ visits
fisheries ; the fleet is strengthened by seasomd visits
of several hundred boats from Japan The^atcnj
valued at about £80,000 ^^' • ^SeriaL
three-eighths falls to the f^^JSffi^
Fish is a principal article of diet among
but after supplying local wants there is an ex P
shown by the following table :
1913.
1914.
Picvls.
2,209
7,598
4,100
1916.
Picvls.
4,093
7,895
6,197
From Newchwang (Maritime and Native Customs) : ^ P^s.
Dried and salt fish . • • • ' 5,770
Dried prawns and shrimps . 2 ,953
Prawn and shrimp skins . . •
Prom Tatungkow :— ^ 129 147 —
Dried prawns and shrimps • •
From Manchouli : —
Fresh fish . • . < •
From Dairen (including junk trafllo) :—
Dried, salt, and fresh fish. •
From Manchuria into leased territory :— _ m
Dried and salt fish . . • • * . .' \ 1,078 1,241
Fish and fishery products
' • ' ' i James, The Long White Mountain, pp. 161-3.
48,263 65,900 55,541
8,134 13,018 24,367
1,161
2,352
54 ECONOMIC CONDITIONS [*<,*
(4) Minerals
Ranee ' I^Tt? *£ TiehHn S' which m eans 'Iron
wrth S oo' a r??i PenSlllU ' Where [t occurs in conjunction
MaLhst. C ° P + f r \ S f ° Und at Tunghwasien and
Monkdpn « ne 1, the E ° rean border due east of
Ift/v e V S at r Pensihu ' Tienpaoshan, ^hai-
11 1 tf, Lead ' silica > Potters' clay, and
coal ZZT' ??* *5 e princi P al mi ^rals worked are
coal asbestos, gold and soda. .
north^'af nf C M efl L thepr ° duct of the ^shun collieries
W^Y^ "^ ^ much smaller q^^tities
Srkden and T eWeS Cl0Se t0 the main lin * between
east of ?hP W + a + ° yang ' and tile Pe nsihu collieries
The Fustin n fr ^ ° n ° r near tbe Antung line.
500 000 00ftf n C ° Ul f les T are ^lieved to contain^ some
daily oSt of% nnn al ; and to be ca P able <* an average
ml^X^Ll 000 t0 3 8 - ; their tota l production in
some 150 000 nnn + Unes are estimated to contain
20? • those a ? V °f-' ^ have a da % output of
Other coal fie?d, ^ ^ eld about 100 tons daily.
NtfK^M&^. Wuhutsui, Liangs!
30 mines are worHng Hunchun dlst nct. In all about
neS? l U mZ:iti^\ hit ^^ a * d ff^s strong
a good ^Sal tI! p W f and b ™ker fuel and is
more dilcuHo i^t e ^ ^ Y< P tai COals are
coke well and are suTt a Kl.> T- Very lastin S' They
Eushun coal i Tl t, i f T bri ^ette-making. The
Manchurir^^rS iff \ ¥"*»** ^ ^
Hongkong, as^eiu/to ^TlwJ* ""f M
mamly consumed locally ° ther coals are
recent yearTT* ^ the ' amo ^ of coal exported in '
_, ' i 91 3: ' 1914. 1916.
From lS J moludln g ]«nk traffic) .
J^ESSj (thr ° Ugh ^ "*
From Antung
Tons.
1,195,204
1,011,152
307,583
140,549
Tons.
1,218,584
990,823
Tons.
837,385
833,581
338,019 83,458
145,750 207,661
Manchuria!
MINERALS
55
The value of the coal exported from Dairen m 1916
was 4 Haikwan taels (13s. tyd.) a ton.
/ron.-The only spot in Manchuria where iron v,
mined on a commercial sc^ is aWensinu,
where the Pensihu Coal and Iron-mming Com-
pany (under the South Manchunan Rfw a y Com-
pany) had one blast furnace completed in 191d luj
two others proposed or in eourse of construction
A yearly production of 50,000 to 100,000 tons ; * ex
ported when the projected works are in full going order
The whole of this output is ear-marked f or the use ,<&
the State-owned Edamitsu Iron-works in Japan.
Operations are ^™^^ depotts^e
a ltrt found at Kwantien 45 mile, ; north east
of Antung, and can be pro duced at a ™^J S ^
a pound. The manner of working it is, now ,
quated and the cost of production could V^W be
largely reduced by the introduction of more modern
"St found at Moho on **^^J*£Ti
the placers lyingiin the bed of a ^ a ^ tab ataxy oi
rive? which joins the Amur ^An,azin on
banks of the Sungari and of tbe p ^ a ^ n W a tributary
the title of ' the Golden ' ; on the » J
of the Argun ; on both banks oi -the Hurka
Tumen ; tnd at Tunghwasier .and ^_ ^3 en n e ^
Yalu, respectively east and south east o d
All these are alluvial deposits and th .dust is ^
by primitive washing methods .Gold ^ s sai
wlrLd in ten l^^^J^t^Vrtaai
others in the province of Sheng^ng, d ^^ in
often very unreliable and there are grea
the way of exploitation extent from the eastern and
M S gC^X^-* °< ** ^ tarS
being recently as f ollows :
56
ECONOMIC CONDITIONS
Co Korea and Japan
Co Shanghai .
total, Hk. taels
total, £ . - .
1'913.
5,530
47,920
53450
8,076
1914.
37,453
32,700
70^153
9,582
[wo. 69
1916.
741,084
901,947
1,643,031
272,414
J^pW ? IS ? owever ''is actually produced in
?S?i? doubtfu ' seei ^g that a certain amount
Ivivf"?? aS C0in and silver > appears -to
Zpov'T S and /°i Wards in the course 6f trade.
£ZS\ th6 ^.^ fi ^ ures may include some gold
S C P JOnd th f COnfines of Manchuria, since the
mUnrL i7 eXn T nt ^ Said t0 have bou Sht gold com-
aarS L the . Slberian miners at **» than the
aarket price, a practice conducive to smuggling Gold
149 1£ f ! 8 o 9 K 8 .T d 1899 ~ l e - 1.036,610 Hk. taels
velv ,11 , ^ 35 A? 63 Hk ' taels (£204,266) respec
^roIuctS ^ haS b6en n( ? g^at increase
f the Nonnr d ^V einS ! . n the marshes along the course
ins beZnT . U ¥ ari ' thG richest region being that
unfari TtT, I" w r , ^ the lo ™ course of the
S for usVfnT^^ S Tsitsihar ' Changchun, and
sold aZ^l ^ Sllk indust ry.. AboSt 130 tons
re_ sold annually m Kinn alone
btT^Z^TJt S Ch- qna ? ities in a district
orkinc. »n,l ! east „ o£ Harbin. Some 600 kilns are
s^a^i n s H p : r ° b t 6 6S0 - 000 tons - which
„ ( 5 ) Manufactures
aa^SSe 11 ™ *** °^ deVelo P ed manufacture
^tn T P numbIr aS of tur^ *"~ J TT I
arb n to meet the needs of the ar™ T*! T^
teir initial prosperity was due to a 3* M however,
ie miUs suffered a i w i \ ^ abnormal demand,
here awK'^^^t* demand fell off.
«« aarbm 10 large miUs, and the
-tlosie, op. c*/ . n OJ.T
Manchuria] MINERALS ; MANUFACTURES £
capital invested in them amounted in 1907 to 6,000,0(
roubles. Their productive capacity at its utm0 ^
reckoned at 242,000 tons of flour per annum. In 191
they were producing only 80,000 tons, or rough
one-third of their capacity. The local demand at tn
time was only 40,000 tons and the remainder had to I
shipped to distant markets. To this the high rates c
the Chinese Eastern Railway presented an obstacj
and the Harbin mills, according to the latest lntorm
tion, were only slowly recovering from the extreme
depressed condition into which they had fallen.
Flour milling elsewhere is carried on on a small sea
except for a single modern steam mill at iienur
owned by Japanese. „ , ,
Brewing and distilling are fairly well develop
industries. There are 14 breweries m Harbin and otn<
on the line of the Chinese Eastern Railway, which supj
the demand of northern Manchuria but do not expo
The principal liquor distilled is known as simo-cb
It is produced from kaoliang, and is stated ^to cont<
at least 40-50 per cent, of alcoho the best kind Lcc
taining as much as 60 per cent*- About 600,000 pic
are produced annually, of which 90 per cent, is oc
sumed within the country.
Industries connected with the soya beanaream
the most prosperous in Manchuria The princi
products are bean-oil and hean-cake. About oi
quarter of the bean crop, or 640,000 ton* . « j^*"
the country. About one-third of the oil imd ^nme-ten
of the cake are exported. In Dairen and Yingko^ j*
are large factories with power plant ; m ^ ral
oil concerns are small and worked by - horse ^r ^m
power. In aU there are said to be s^ 6 . 1 '™^
in Manchuria. Further particulars as to soya b<
products will be found above (pp. . 45-bJ
There are many smaU industries working tor ic
mere are nut j wooUe n industries include
' Consumption Only. J-*"J w " u irn-nnrtprl M
manufacture of carpets and rugs from imported LM
eolian wool, felt boots and other felt goods. Uos
cotton doth is woven and dyed, and flax and hemp
58
ECONOMIC CONDITIONS
[iTo. 69
large numbers fnl^ ^1^ and J Unks are built in
At ZZkdL +t " ei ghbourhood of Kirin.
^tealteZ^ ft^y^™ *^ h ™
concern erectedTS 7 ' ? c ? mbin ation with a Japanese
^bideC^bhatt m 1916 to m ™facture calcium
The -Rr/flt T e . of am monia.
considerate ^ fe M* Zf™ C ° C °' has a ^^ of
Tobacco Co ?f t Moukden > and the Eastern Asia
Newchwang' L ZT!! concern ) a similar one in
factory exists and is sa 5 tnV° Wn . * ° hineSe tobaCC °
6 ^ a »ds,fcfc
i (C) COMMERCE
(1) Domestic
Domestic ^ PHncipk Bra ^es of Trade
development iTu^t h ™ SO far reached no great
tion ar P e peasant^ ^Vid^ ^ ° f the P ^"
own wants, both nfrt P rovide a great deal for their
implements of induct™ n S cessar ies of life and of the
ing of agricultural product * ag " Culture - ™e market-
sumed, the coal a St I Uch as are not Ioc ally con-
distribution of such ^ f trades at Ports, and the
Ported, principally C0 S U i aCt 7 ed ?°° ds as are im "
stitute the great mX!?^ g °° ds and Petroleum, con-
great bulk of the trade within the country.
also in cattle^nTmelt 11 ^ ?°^ r and § rain tr ade and
and distributes locdlv 't^-? 11 lt ex P orts ' ** im P°rts
hardwares, and g^rocerL ^t f ?f> tobacco > ™^>
...... ocenes. The total trade of the town ,
Manchuria] MANUFACTURES ; COMMERCE 59
in 1908 was estimated at 35,500,000 rubles, of which
the grain trade accounted for at least half.
Manchouli, Tsitsihar, and Suifenho have some trade
in meat, eggs, butter, flour, and hides. Perishable goods
which are destined for European consumption are
brought to these centres for transport in refrigerators
on the Chinese Eastern Railway.
Kirin was formerly a great commercial town, out
until recently has been handicapped by lack oi railway
communications. It is nevertheless still a weaimy
town with a large wholesale trade in timber. It is a
centre for the whole of north-eastern Manchuria and
distributes cotton-cloth, kerosene, and other articles oi
daily requirement over a large area. Ihe domesuc
trade of Kirin was valued at about 5,000,000 Haikwan
taels in 1908. ■ . ,, ■• QQT1
Tiehling is second only to Changchun in the bean
trade and has a similar general commerce.
Mouhden is not generally considered a commercial
centre, and its trade is mainly retail ^turns tor
1908 value its domestic trade at 12,000,000 Mexican
Liaoyang has lost its former commercial importance
since the Russo-Japanese War, and is now a local
06 "Changchun is the principal centre of the ^nmlto^
of Manchuria and, as the meetmg-point o E the South
Manchurian and the Chinese Eastern ; B^ ^
very large transit ^business. ^^^^
trade are beans and gram, ww r
cotton good,, which are ^ported. The Reason
is m ™ter, when fte fc^^ P dso£beaI1Bwfte
communication. Over "M""'" , 10 000 tons f
brought to ..mark* j u * ™ d <£« 7 5 00>000 ye „,
l^poS^^^^
fl Th and Streird^a^nXn! which is the
A hor , IXf for the sale and purchase of horses in
E2rirFar4°and transport inimals form the bulk
60
ECONOMIC CONDITIONS
[Ho.69
^oSSm^^sj^. if sp T g and autumn '
good numbers. g are brou ght to the fair in
o^ff^fe^ "» P° rt a » d trading
the diversion S™,^ S e com Petition of Dairen and
Manehuria to tt^th W^-F*™" CMna and
still has, and m«t »? ma Eai W ; but the town
to its si nation o„ ? ^ S retain > a cer * ain trade owing
■ ^ the populous L? V?. ' which makes ** the centre
^ prin C ?paU v Tn th? ° f ?S river ' Its d °mestic trade
with theaddi ?on of W 1 ^ 16 beam and cotton-oloth,
ware, wiuokit^^T' SUgar ' glaSS ' and hard "
raw silk, and hidS M • ° m . im P orte , and ginseng,
maes, which it receives for export!
The y™?**™ 8 t0 r™**e Trade and Commerce
Chinese P 3 al whiS ' "^ Under this ^ad are the
Ki ^^^^5TtteK hI ? kinds: (1) **,
guild ,- and (3) the GniM m p weikwa n, or strangers'
instance is tie « (W r -^ chant » of which the best
d) The W ^ Gmld >f Newchwang.
or public pfacef orT.^ ? ° hinese a P» blic office
matters of public intew • tor the consideration of
merchants and crafted * 1S an ass ociation of the
b y an annuallv-eWtSf a P arti cular trade, managed
to arbitrate inhtSntt "°Tl? ee ' Its s P ecial d ^ *
members, and oiily S fL f d + ° ther di sputes between its
law courts allowed ™ ^ort is an appeal to the
public opinion of th'p ^ * g ' as representing the
m all matters of buLf I exercises complete control
from the GovLnment o. ' Ut lt has no authorization
diction over member, £ T 7 , external source.' Its juris-
eharter or delegSXowe^W I ' n0t b ^ reason of an ?
of combination bv tK ' but by virtue of the faculty
the individual which it «° m ^ umt y and of coercion on
race '.» wmcn ls so characteristic of the Chinese
The income of the gui i d is derived from ^^
1 Morse, The Guilds of China, F . 27. .
MM xchuria] TRADE ORGANIZATIONS 61
on business, voluntary gifts, and fines. -The guild
establishes rules as to apprenticeship and the conduct
of business, and enforces them by a system of penalties
ranging from fines of a score of candles for the temple
or a dinner of so many dishes to the guild to cessation
of business relations or commercial boycott. J3y declar-
ing a suspension of all the business of the trade, the
managing body sometimes even compels the Govern-
ment to withdraw or modify an obnoxious order.
(2) The Hweikwan, or Club House, is an association
for mutual support and responsibility among the natives
of a particular province dwelling in a town outside that
province. It exists to push the individualand collective
interests of the body of aliens who constitute its members
and to protect them against the hostihty of natives and
the rapacity of officials. It arbitrates between members,
prosecutes their cases in the courts of law, and wdl even
in cases of necessity, bury the body of a dead member
in its cemetery and pay his funeral expenses. It pro-
vides for such of its members as are dangers a free
employment-agency, guarantees then ' r f Pf™^'
and obtains for them information as to the solvency
of any business man in the town.
Each club has a manager, advisory committee, aiui
a permanent secretary who acts as the m eohum of
communication between the club and the 'Government
authorities. The club is supported by voluntary con
^^eteaY^m T^Z^n g is a body eom-
pofedK cLe ? W~l -tfJStS
there ; ^^^^^^^ allow P ed to levy
to be carried on through .n, * uno fficial munici-
fees on the trade of the port, f s an uno d reservo irs,
pality it ^^lJl^J: 8 G te ^oor, and con!
controls common lands , reUeve i ^
itt^^
trading and markets^ ^ ^ very
mot" exce^tTopPr fash, whifch was not in the coffers
62 ECONOMIC CONDITIONS [» N
^ceTvTthT^l^ g U j ld ' Signers were driven to
gooSiorJZf S / f 1 the Sale of their ™P^ in
^b^S^^Sd^ *j™H§ the agency of
maintain brancLf at WT * Euro P ean banks
such a dPBiSwvf -Newchwang, and there is not
thfhLds of l m r ey ' ? e mo *opoly of business in
absolute ° mWs ° f the ' Great Guild ' is less
m^e m aTHarbt ded f a l there is a C ^ m ber of Com-
fee? gn at Bo;Td bl n f ^j e h :tt Galling ii 8elf the Dairen
corporations H^™ ™ * ? airen> These are forei § n
MooKTew& C A ha mbers of Commerce exist It
H^^^^^^^ 3 ^ Changchun and
provinces. branches in the three
T M ^ Foreign Interests
^■^^^fm iai T^ especially British '
themaintenancenS ^ Srme ? b ^ treat ^ to consist in
of n^^S^-f^*"*' and ° f the P™ ci P le
^ umuesior the commerce of all nations.
(e) Economic Penetration
ecot P m^ tLnrn^in M ^"^ a ^ h de ^ e ° f
control of theZJ • Ma ^huria. She has exclusive .
all mining and S^hJ? npQrfcttnt commercial railway;
China, in LurelvZ^ in 1 enter Prises she shares with
of other S?oSZ n ^^^ to the excIusion
allowed to iSe 1;^ *?^ Ja P an ^e alone are
Position that she oo mil ? rial under t a kmgs. The
veto the construction S 68 1S ? Udl that she 1S able to
witK the South Cnol! ^ h £ e that could c om P ete
Preferential St o ^T** Mway and has the
Only Jap« w ^?set^ 1 ^ y ii 0an8truotion in its area "
zones • bufthe Jamn.f T Uow * d ™^n the railway
Ma .chu r ia] ECONOMIC PENETRATION 63
trade 83 per cent, at Dairen, 47-6 per cent, at Antung,
and 45 per cent, at Newchwang, is Japanese. Japan
has the exclusive use of certain telegraph wires, worked
by her own operators, and has her own post offices all
over southern Manchuria. The Japanese banking
system is everywhere represented by the Yokohama
Specie. Bank. f
By virtue of recent agreements, if the revenues oi
southern Manchuria are pledged as security for foreign
loans, Japanese capitalists have the first claim to
advance the money required, while, if financial experts
or political advisers are employed m southern Man-
churia, they are to be Japanese. .
As an instance of trade organization as a metnoa oi
penetration may be cited a combination of faye J apanese
cotton textile companies in the Kansai district ine
combining firms agreed to export yearly 12,000 Dales
to the value of £120,000, even at the risk oi loss, and
to entrust the entire sales to a single firm, the Mitsui
Bussan Kaisha. They are to receive special rates on
steamers and railways and a loan from the Japanese
Government of 6,000,000 yen (£600,000) at 4 per cent
Their transactions can be financed on SP^"?
favourable terms, since the Japanese Government
having to pay troops in Manchuria, remits through the
Yokohama Specie Bank, which does not ^ send the
money direct, but lends it to the cotton traders, who
repay the loan by selling goods in Manchuria
The Japanese Government has ^° J^J^^f
money at U per cent, to companies | exporting Mtetaj
cement, beer, marine products, ^ b ?» ™^£^^
to Manchuria, and, in the , event of a si ^° once ™
effecting an export to Manchuria of more than
5 000 000 ven (£500,000) in one year the Government
undertakes" to refund half the interest received.
i The following particulars are taken from Lawton, op. cit., pp.
U ? 8 aSS&- - Millar*, TU^Ea^Qu^on £ 203, *.£
66 ECONOMIC CONDITIONS [»•.»
^ It is not generally possible to give the countries of
-STi? , ex P Grts > si nce trans-shipment is often
etteoted at such ports as Hongkong and Shanghai and
the identity of the goods lost sight of, but some idea
of the shares of Manchurian exports taken by different
a ° r nt fH ma y be obtained from the following particu-
im/-^ e - Values of ex Ports from Dairen in 1913 and
arif'i ^remembered that the distribution varies
SSL Afferent ports, Japanese preponderance
51 m A ° r f mark ? d at Dairen than at any other port
H An + tun S' whl e in the trade of the northern ports
Russia naturally takes the foremost place :
Country of Destination. 1913
Japan ... £
Korea
Great Britain and Colonies
Hongkong
United States and Hawaii
Kussia (Pacific ports)
•Belgium .
Germany .
Not ascertained.
3,966,008
234,859
. *
20,184
*
196,556
8,473
1914.
£
3,979,365
120,970
300,806
106,629
98,257
' 54,880
166,156
30,071
. • - ity Imports
imoort°fntf M S ^ by far the most considerable
the Too^tl Manchuna - What the Japanese think of
be seen frZ aS ? f arket for their cotton goods may
■SffoS; SpES^*" Y — ^president
churLri 6y f S ^ 6 .P^oiwing power of the Man-
MaSrJ'f 11108 * boundless - The inhabitants of
; inltm IZ^ ¥ ter off than «be Koreans, and,
^V^t^^™^ about 20,000 persons
SCeIbouT m 4 lnto the countr y from Shantun ^
and it is S ? u^ e new settlers ad <* to the demand,
^nsum^fn , Ult 1° lma § ine how g^at will grow the
T ShuL r^° n g ° 0ds in Anuria. . . g .
r Manchuria itself is one of the best markets in the
1 Quoted by Lawton, op. cit., pp. 1180-1.
Manchuria]
EXPORTS; IMPORTS
67
world for cotton textiles. The art of weaving is yet
in a very primitive state, and as it can by no means
be improved in the near future, the inhabitants must
look abroad for the supply of the cotton stuff for their
clothing. The large majority of the population are
peasants and labourers, and they are naturally inclined
to prefer coarse and more durable Japanese cottons to
finer calico.' . ^ , ,,• 1q „
Details of the quantities of the principal articles
imported through. Manchurian ports are given in
Appendix V. The cotton statistics certainly appear to
justify Mr. Yamanobe's view that Japanese textiles
will in the end oust all others from the Manchurian
market. The total values of imports into Manchuria
are as follows (the conversion being made at the mean
rate for each year) : ^ 1QU 1916 _
7olQis45 73,988,133 83,591,308
Haikwantaels . . . • , • JJgJ.Jg ^ , .^ 13862)571
£ sterling . . • • • 1V > J * >
Here again an increase will be observed between
1913 and 1916,. though less marked th an ^ ca ^
of exports. As regards quantities ^e f^jt
cotton goods declined appreciably, f*^™™Z%£
and so did engine oil, while kerosene decreased largely.
There were substantial increases in gunny bags and
rice. Cigarettes rose, while matches fell
: Some ^^rf£^Tt£ foUo^fSt
into Manchuna + is ^^^^d 1914 the values of
which gives for the years 1914 an " iy ^* J „ nmces G f
zshst saw r^xrxw
explained :
Country of Ongm.
Japan . • •
Korea • •
Great Britain and Colonies
Hongkong • •
United States . •
Russia (Pacific ports) -
Belgium • • '
Germany •
1913.
£
| 3,530,367
255,890
224,066
. *
51.333
284,865
1914.
£
2,402,108
153,408
239,135
143,276
507,628
237,851
87,710
214,145
* Not ascertained.
F 2
68
ECONOMIC CONDITIONS
D
No. 69
(c) Customs and Tariffs
In former times, when European commerce with
Umia was concentrated at Canton, the- Hoppo, or
Chinese Superintendent of Trade at that port, used
to appoint thirteen co-hong merchants, and every
foreigner trading at Canton had to do business through
one o± these. The co-hong merchants had especially
to see that foreigners for whom they were responsible
paid their customs duties, and they controlled the
customs houses, which were farmed out to them.
tfy the Treaty of Nanking in 1842, the customs duties
were faxed at 5 per cent, for imports and 5 per cent, for
exports payable at the treaty ports.
+ ^In the middle of the nineteenth century, owing to
the expense incurred by the Government of China in
connexion with the Taiping rebellion, a further tax
HL °?rf d - Called Likin > or 'contribution of
rftZ f n + d h ' in JP osed u Pon goods in inland transit.
x*Am stations or barriers were placed along the main
Xtl ^ COn ; m -« e both h * Iand and water. An
official hhm tariff exists, but it is ignored both
■hL-p J I t nd traders ' The f °rmer endeavour to
St, ? ymeans of m egal exactions, and the
cleaned r!-iJ ay °2 f6Wer § 00ds ^an are really
cW.; * 1 B and re § ular traders meet likin
3 % the payment of lump sums. Likin is
demrW l e r ed at the rate of 3^ per cent, at the
tS i atl ° n and 2 P er cent - at each inspection
SZK« Th + e / f" lou n Ilt colle cted within a province is
SSS^IS 1 ^'* u 10 Per Cent " but whe/goods are
to^oi ^20 p^ r °c U e g nt. SeVeral ^'^ tt """ ^^
tvltlnr^^l ^ th Eur °P e was extended to the
iolmllolVJlt em ^ V ° SG h * which customs duties,
rC? S 7 the C °- h0n V merchants, were paid
nltumllvi^ ? ad J S \° ^r "own consuls. This
cJS y Jwi°f ^ ^ n 1863 the Chinese Maritime
and TxlS ^ \ "^ Z^J ^ to collec t the import
and export duties and the likin tax at the treaty
M anch«ria] CUSTOMS AND TARIFFS 69
ports. In 1898 the Chinese Government agreed that
the Customs Department, which had practically been
created by Sir Robert Hart, should remain under
a British Inspector-General so long as British traae
was paramount in China. Under the Department
a system grew up according to which foreign goods,
on payment to the Maritime Customs of half the duty
together with the ad valorem tariff, should he exempted
from likin and obtain a ' transit pass to cleai -them
through all likin barriers. At treaty ports, foreign
goods? on which the import duty has been paid, may
be dispatched at any time to another treaty port
without further payment. . , h .
The great difficulty in connexion with hkin n ; that
the central Government makes revenue demands on
the provinces for specified sums leaving it to tne
provincial Governments to raise them as th ey p^ase
Each province enjoys a measure of f^***™^
and treaties of commerce with the f^l^l^^
do not bind it. Thus on the one hand the European
trader, who has paid extra tax to the f^ Mar^
Customs at the port of importation to free his gooa
from likin, complains that his transit pass does not
avail him in the provinces and on the other hana,
the Chinese revenue official co^ams that the^
pean trader contributes nothing to the prov
Revenue if likin cannot be imposed on h. goods
The import tariff of 5 per ^cent o ^ ^
remained unrevised for f orty «>u r ^ ' T t of
Treaty of ^f*^>J°J?wffito Chmese
1902. By Article VIII <*™ tem of levying
Government, recognizing ff^l'Lofproductioii,
likin and other dues on goo^ **£^4X, circula!
in transit, and at 'destination ^ des regtg of trade ,
tion of oc-^^^^ritotely [subject to
hereby J^ertoto to *» o ^ ^
certain h^tatgns] tho ^ d to a surtax
In return, the Britisn ^ ^.^ import and
7? p" ^n Tin expoW together with a consumption
70
ECONOMIC CONDITIONS
[No. 69
tax on articles of Chinese origin not intended for
export.
Nevertheless in 1909 it was officially stated in the
British Parliament that China, far from carrying out
the provisions of this treaty, had on the contrary
erected fresh lihin barriers, and had further failed to
do anything towards fulfilling her promise to reform
the currency and judicature.
By existing arrangements foreign merchants other
than British may import goods into, and export
native produce from, China on payment of a tariff
duty amounting to 5 per cent, on the average values
of their imports in 1897-9, and 5 per cent, on the
values of 1860 in the case of exports; They may take
foreign goods to', and bring native produce from, any
inland place on payment of an additional half tariff-
duty as transit dues. They may also convey Chinese
produce from port to port, paying the full export duty
on shipment and half duty on landing. They can
manufacture any kind of goods at treaty ports,
subject only to the conditions binding on native pro-
ducers, and are exempt from Chinese local taxation.
It may be remarked that the abolition of the export
tax is a reform urgently called for in the interests of
Chinese trade.
(D) FINANCE
(1) Taxes
A poll-tax is levied at the rate of 1 tael for each
family, or group of families, a register being kept for
the purpose. ,
^The land-tax has already been discussed in dealing
with land tenure. In 1915 the estimated revenue
trom this source from the three provinces was :
Shengking .
Kirin .
Heilungkiang ' , ' \
Total for Manchuria
China (inoluding Manchuria)
Dollars.
940,256
792,223
362,017
2,094,496
65,171,216
Manchuria]
CUSTOMS; TAXES
71
There is also a salt gabelle. The manufacture of
salt is a monopoly worked by a number of licensed
merchants, and is conducted, on the low-lying western
coast of the Kwantung peninsula, by the evaporation
of sea water. Before the salt leaves the works, the
manufacturer has to specify the quantity he is about
to remove, the destination and the route by which the
salt will travel. He then gets a permit for which he
pays a lump sum, but payment is often made through
the great native guilds, which stand security for their
members. The retail price of salt at the works is
stated to have been formerly from 1J to 2 farthings
per pound according to quality; but ite cost was
raised enormously by lihin charges, which otten
added 3 farthings to the price. The tax is said to
have averaged 1 farthing a pound or a little more.
Till recently it appears to have been collected m
Manchuria at the rate of 0-63 dollar per >picul and ^ the
consumption seems tohave been 3,600,000^ a year
Some years ago it was proposed to raise th e tax :U>
2 dollars and eventually to 2-5 dollars, and to make it
uniform throughout China, but it is not clear whether
this change has actually taken place. rMor :x. nlp
The province receives a portion of the maritime
customs, and as much lihin or transit duty as : the
local officials can induce traders to pay. J^oarts
have to pay transit duties on passing through a cus
toms barrier, and also on unloading. J^e r there
are percentages levied on sales of land Rouses and
cattle, a Manchu paying 3 per cent, and [a ^Ohmaman
5 per cent. A tax of 3 per cent, is J ^^
timber when it is marketed and all gold-miners have
native boats. Distilleries pay 300 to 500 taels per
• ^O^Whorit seems to be ifcj ^eral opinion
that the Manchurian is very lightly taxed.
72"
ECONOMIC CONDITIONS
[Wo.69
(2) Currency
t Ji 6 nT tem v cur f nc y found ^. China is probably
hhSSn? ?° m P llcated in the world, and the confusion
thfc ifL™ 8 ™ Manchuria ^an in other parts. On
' Tr IX st li lon . M ^ Whigham remarks (op. tit., p. 134):
onwT , Un J *5 e f ao S t[ ^ or st "ng of cash, is the
only real stam } ard of ^^ g.^ . g ^ ^
co^n^ 6 ' bUt ° n T ly at its market value, like other.
svSZ n/fl > Such ^instances no stable
a fixed ™l + f 6 ls PO 881 ^. Even if the diao had
monPvT. - 6 ' *?*? W ° uld be no fixit v about the paper
Se Jin Clr P ula + tlon J- b ^t when it is considered that
the slrjf 168 t° a ? f normo «s extent, according to
in K rTnt P ^ lty ° f the Cash in each di^ict, so that
the exoh a r a ° g( V to the ruble > while in Tieh-ling
some toTf f™ 6 ^? 01 ? ei § ht to ten > °ne may have
SO S e f l notloI f °f th « financial chaos of the country.'
■ . Ihe following is the table of theoretical values :
10Hao = l Cash.
10Cash = lCandareen.
10Candareen = lMace.
10 Mace = 1 Tael.
wTaf S tV ?n Sh = 1 Cent ' and 100 cento-
1 tiac or string Su 10 r ° lls of 10 ° ca ^ make up
i tSLidoZ 8 ' I} ence {t & pp ears that 'I tael =
for strin g inf ca -h fhe ST a ? ain char S e is made
but onlf | 6 o Too M USUally COntains not ^ m
(Shantmfg and ChmhV n^^'u in northern China
that the ti«n„ * ■ } ° ne cash counts as two, so
cally abou m nta ™ nomina % 500 cash and practi-
cash to a titn L WM t m Manc »™a the number of
at Moukden and T* Sma ? er ' at ^ewchwang 160,
should be observpH^ irin ™ th , er more ' The tiao, it
a measure^Ta^e' ^iS^ 6 - 48 ^ 118 ° f ^ ^
The taAl o • • ' ltself a com.
'* law J I Certam de S ree of fineness, and
As a wezght the tael is one-sixteenth of a catty or U oz. avoir-
Manchuria!
CURRENCY
73
there are, moreover, at least four different ta'els bearing
a fixed ratio to one another, thus :
100 Haikwan taels = 101-642395 Kuping taels
= 105-215 Tientsin taels
= 114-4 Shanghai taels.
The Haikwan or Customs tael is that in which all
customs dues are charged, the Kuping or Treasury
tael that in which taxes are paid. The former is the
most important for trade statistics, while exchange
is usually quoted on Shanghai.
The sterling value of the Haikwan tael for recent
years (based on the variation in the price of silver)
is shown in the following table, which needs to be
borne in mind whenever customs statistics for different
years are compared :*
1911 1912. 1913. 1914. 1915- 19 16 -
2s. m. Ss.Ofi. 3*. 0|d 2«.8iA 2s 7|d. 3, md.
1910.
Value. . 2s. 8^.
HT to fi 1 . 7-43
fitoHT 1 . . 0-1345
7-44
0-1343
6-55
0-1527
6-62
0-1511
7-32 7-68 6-03
0-1366 0-1302 0-1658
Approximate.
For actual currency the Spanish, Mexican, and Hong-
kong dollars pass in China at various rates according
to the amount of silver they contain and their local
popularity. But in Manchuria, besides cash, the only
currency in general use is supplied by the paper notes
of local bankers, and these only pass within the parti-
cular district in which the banker's credit runs. Ihus
if a traveller holding Moukden notes wishes to go to
Kirin, he has first to change his notes ^ Moukden and
buy a Kirin credit in silver, and then change his credit
into Kirin notes. ,.
Of recent years perhaps the most important medium
of currency has been the Japanese War notes which
have now been replaced by those of the Yokohama
SP The Russians endeavoured to force paper rubles
into use, but the Chinese would only accept them at
V heavy discount and then sent them to Shanghai to
't.' !
' lit
74 ECONOMIC CONDITIONS [*o. 69
bechangedintosilverdollarsorcredits. Largenumhers
ot counterfeit ruble notes have been imported into the
ZTT y 'J ° xlstence of Avhich naturally depreciated
Mlnchuria 1 * CUrr6nt Value ° f Russ * an P a P er in
nf ^ e ^ han § e value of the ruble is 'of course a matter
Sti^ S ^ erabl ® im P° rtanc e in Manchuria, and its
^deprecation in the course of the war has had
™X?,f r T^ C °?> Se(1Uences for commerce. The Harbin
enoZt Trade . Re P° r t for 1916 draws attention to the
rer wS . fluc + tuatlons in the value of the ruble as
1914^6 m m the northern Provinces during
Highest
Lowest
Average
1914.
Kirin. Tsitsihar.
• 23-50 31-50
■ 8-40 H-40
• 13-40 16-53
1915. 1916.
Kirin. Tsitsihar. Kirin. Tsitsihar.
16-70 20-20 12-80 1344
7-05 7-40 4-99 5-54
10-98 14-03 9-14 ■ 10-31
taek e£ V}° e ? d ° f the y ear 1916 ' 100 Shanghai
120 to no ge V2L 3 ? rubles ' the normal rate bling
beina qs ??; "J? £1 ° ^ 175 rubles, the normal rate
oeing 98 (and the actual par 94-57)
presenT TJT™™* Zf lues W been tf™ in the
rate mav S e ?• ? Wes ' and to these the normal
W eb I b a ? P i ied - T In certain other cases values
valent tc ?L¥}°%\ m Ja P an ese yen, which are equi-
valent to 24^. (taken as approximately 10 to £1).
(3) Banking and Financial Influence
HonaSo- Da a nk i ng ol S re P resen ted in Manchuria by the
SaTrfn 2 d Harbin " • Bu } dD * Cor P- atio » at
Bank a l a A Russian by the Russo-Asiatic
Japanese bv^V^? 111 ' and Newchwang ; and
Newchwan/ ?! Yokohama Specie Bank at Dairen,
its offZof ' 1 S g ' ?*oukden, and Harbin, and by
The Chir, P t' ^ B ?, an fe 0f Ma nchuria, at Moukden.
oo^tT^:^ China " Bank of
^ k ~^
Manchuria I
BANKING
75
Chosen (Korea) at Antung, and two concerns, the
Harbin Mutual Banking Corporation and the becona
Harbin Mutual Banking Corporation, at Harbin.
In view of the fact that industrial and mining enter-
prises in southern Manchuria are practically monopo-
lized by the Japanese, it is reasonable to suppose that
the Yokohama Specie Bank, which is the most widely
represented there and has Government support behind
it, wields a greater influence than any other bank.
Japanese penetration has not left much room tor
the investment of other foreign capital in Manchuria,
but the most profitable fields would appear to be
mining and lumbering in Kirin and Heilungkiang and
the improvement of railway communications in those
provinces in order to exploit their undoubted agri-
cultural capabilities.
(E) GENERAL REMARKS
Economically the greatest need of Manchuria is
security of life and property and freedom from brigan-
dage. Next to this, and closely associated mth it
is the provision of better roads to open up the jemoter
parts and serve as feeders to the existing «£*g*
This need is even more urgent than the > "J**™*™
of fresh lines. Further, while it is ™^^*™
resources of Manchuria cannot be ^P^S;
the help of foreign enterprise, it may be P^sible
to suggest that it would be to the benefit not , only ot
Manchuria itself, but also ^J^^^^SeSstSS
if that help should take a rather more ^^Jf" 1
less exclusive form than has hitherto been the case.
84
so
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APPENDIX III
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Manchnria] PORT TRADE, 1916; EXPORTS
85
IV.— PRINCIPAL EXPORTS
Quantities in piculs of 133J lb. or 60-453 kg. (16-8 piculs=l ton).
Commodity. 1
Beans and Peas *
Bean- cake . .
Bean oil .
Kaoliang ( tall millet )
Millet (spiked)
Maize . . . .
Wheat and Wheat Flour 3 .
Total Cereals 4
8 WildSilk 5 . . .
8 Wild Cocoons 6 . .
8 Waste Silk . . .
Tobacco 7 . . .
1913.
8,473,718
13,608,742
742,400
1,048,200
1,479,882
218,335
2,085,409
4,844,729
18,382
168,529
13,403
15,019
1914.
10,664,725
12,072,685
736,149
241,908
794,044
559,653
2,208,092
3,773,963
15,412
105,484
14,056
11,926
1916.
9,264,790
14,888,872
1,377,256
389,434
239,449
143,859
1,629,366
1,945,848
14,028
73,061
13,741
16,441
1 Coal and coke are exported from southern ports only ; see p. 54. Timber
is differently classified at different ports ; see pp. 51-2.
2 Beans and peas, as distinct from beans, appear in the exports at ^anang,
Manchouli, Harbin, Suifenho, and Hunchun (both appear at hansing) : laid,
4,253,019; 1914, 4,092,963; 1916,4,596,076. ,„,.-.,„,, 1Qlfi
3 Flour, all. from Harbin district: 1913, 242,264; 1914, 242,973; 1916,
* 'including, besides those specified in the table barley oats, and buckwheat,
and unspecified cereals from Manchouli, but excluding flour. Anflin _ .
5 Including filature from Dairen : 1916, 1,246; and pongee from Antung .
1913, 89; 1914, 123; 1916,102.
stalk from Antung. ,
8 Silk is exported from the four southern ports only.
86
APPENDIX V
[No.<
V.— PRINCIPAL IMPORTS OF FOREIGN GOODS
Commodity.
Cotton Goods 1 : ,
Shirtings, grey, American
„ „ English
„ „ Japanese
„ Total 2 .
„ white 3 .
Sheetings, grey, American
>, „ English
,, „ Japanese 4
„ Total 2
Drills, American .
„ English
„ Japanese .
„ Total 2
Jeans, English ..
„ Japanese .
„ Total 5
T-cloths, English .
„ Japanese .
„ Total 2
Cotton Cloth 4 , e .
Plain Cottons, Total 8 .'
Dyed, fancy, and misc. Cottons
Cotton Yarn
Silk Piece Goods 10 .
Iron and Mid Steel, new and old
Iron, galvanized, sheets and wire
Tinned Plates
Oil, Engine . . "
Oil, Kerosene .
Bags, new and old u
Bice .
Cigarettes
Matches
Sugar ... \
Electrical Plant and Fittings
Railway Plant 12
Medicines
Classifier.
Pieces
U.S.
Piculs
gall.
.Pieces
Piculs
Mille
Gross
Piculs
Value H.T.
1913.
177,885
110,989
76,110
466,218
267,112
298,675
22,703
2,003,363
2,333,544
83,999
3,861
372,985
477,262
422,895
65,276
502,503
4,503
31,136
39,614
3,295,830
7,382,083
638,966
133,117
292
448,899
58,804
26,938
704,322
19,167,990
12,780,391
391,383
956,243
3,058,861
411,353
342,169
205,269
181,365
1914.
60,093
73,713
69,226
295,380
320,079
186,726
29,981
3,214,360
3,460,724
63,732
3,276
434,034
510,978
359,778
147,110
516,673
3,486
3,399
8,345
1,436,227
6,548,406
563,743
161,189
1,340
479,537
45,682
31,774
821,866
18,877,123
17,354,082
471,658
940,449
2,367,398
384,903
544,885
627,214
217,800
1916.
9,265
53,750
124,738
188,073
223,897
152,124
16,082
793,782
978,240
52,063
1,067
327,941
381,165
131,928
351,269
483,197
3,217
4,093,175
6,380,679
370,861
141,842
508
575,248
24,361
38,302
961,705
11,992,690
16,937,304
564,043
1,020,193
2,818,586
406,50o
805,39
936,637
I The great bulk of cotton goods is imported through Antung, Dairen, and . Ne*-
cnwang Of the small quantity coming through northern ports most enters Sunenu •
* Including those of unspecified origin.
Including small quantities of white sheetings entering Aigun. ' _ v
Certain goods entering Antung, and classed in 1913 and 1914 as Japanese gw
sheetings were classed in 1916 as Japanese cotton cloth.
Including those of American and unspecified origin. ,„.„«.
Including Japanese cotton cloth and imitation native cotton cloth and Nankeens-
Averaged at 20 yards.
* Total of previous items in the table.
io^ll U ^l aU ? the r C ? it0n g ^°5f 1 uoted b y the P^ce except blankets.
II MostP Antung and Dairen almost exclusively.
12 Entered at Dairen only. .*/*&£* ,n-: -,- — ;
Manchuria]
87
AUTHORITIES
+ China. The Maritime Customs. Returns of Trade and Trade
Reports, 1913-16. Shanghai, 1914-17.
-China Year Book, 1916. Edited by H. T. Montague Bell and
H. G. W. Woodhead. London.
^-Official Guide to Eastern Asia. Vol. i, Manchuria and Chosen.
Issued by the Imperial Japanese Government Railways.
Tokyo, 1913.
Imperial German Consular Report on Southern Manchuria for
1912-13.
-Hosie, Sir Alexander. Manchuria, its People, Resources,
and Recent History. London, 1901.
-James, Sir H. E. M. The Long White Mountain, or A Journey
in Manchuria. London, 1888.
'-Lawton, Lancelot. Empires of the Far East. London,
_ 1912,
Millard, T. P. F. America and the Far Eastern Question. New
York, 1909 ; published simultaneously as The Far Eastern
Question. London, 1909.
Millard, T. F. P. Our Eastern Question : America's Contact
with the Orient and the Trend of Relations with China and
Japan. New York, 1916.
7Morse, H. B. The Guilds of China. London, 1909.
tRichard, L. Geographic de VEmpire de Chine. Shanghai,
1905 ; English edition, Comprehensive Geography of the
Chinese Empire. Translated by M. Kennelly. Shanghai;
1908.
^ Weale, B. L. Putnam (i.e. Bertram Lenox Simpson). Manchu
and Muscovite. London, 1904.
""Whigham, H. J. Manchuria and Korea. London, 1904.
►
HANDBOOKS PREPARED UNDER THE DIRECTION OF THE
HISTORICAL SECTION OF THE FOREIGN OFFICE. -No. 71
KIAOCHOW
AND
WEIHAIWEI
LONDON:
PUBLISHED BY H.M. STATIONERY OEEIOE.
1920
EDITORIAL NOTE
IK the spring of 1917 the Foreign Office, „ — on
with the preparation which they were making for the work
of the Peace Conference, established a special section whose
duty it should be to provide the British ^f^J^
Peace Conference with information m the ^^
form-geographical, economic, historical, social, rel giou , and
Xrrespecting the different countries ^s ^,
L, with ^^^Jg^X%*
TZZZZIZ:: caning w g hich it appeared that a
^E2££^~ — by tr t ed ^
v + a subiects who (in most cases) gave their services
on historical subjects, w v geographical sections
without any remuneration. For the &J» ^ Qn
saasrsK ^r=—
hv the War Trade Intelligence Department, wm
by the War Qf ^ mapg accompanym g
established by the * om § e above . men tioned depart-
the f* -T.XT^SSc of them were the work
'^T^^t^Zs ^ completed its task,
Now that the Con « qus . iries and
^ TTas dedded Tissue the books for public use,
requests, has *£** ^ to students f history,
believing that ***T affairS) to pub i icist s generally
^ D X^«S^aven». It is hardly necessary
thaHome of the subjects dealt with in the series have
t0 ^ V! come under discussion at the Peace Conference ;
C Ts th S- "eating of them contain valuable informa-
££, it has been thought advisable to include them.
It must be understood that, although the series of volumes
was prepared under the authority, and is now issued with
the sanction, of the Foreign Office, that Office is not to be
regarded as guaranteeing the accuracy of every statement
which they contain or as identifying itself with all the opinions
expressed in the several volumes ; the books were not prepared
in the Foreign Office itself, but are in the nature of information
provided for the Foreign Office and the British Delegation.
The books are now published, with a few exceptions,
substantially as they were issued for the use of the Delegates.
No attempt has been made to bring them up to date, for, in
the first place, such a process would have entailed a great
loss of time and a prohibitive expense ; and, in the second,
the political and other conditions of a great part of Europe
and of the Nearer and Middle East are still unsettled and in
such a state of flux that any attempt to describe them would
have been incorrect or misleading. The books are therefore
to be taken as describing, in general, ante-bellum conditions,
though in a few cases, where it seemed specially desirable,
the account has been brought down to a later date.
January 1920.
G. W. PROTHERO, '
General Editor and formerly
Director of the Historical Section.
Kiaochow]
TABLE OF CONTENTS
I. GEOGRAPHY PHYSICAL AND POLITICAL
(1) Position and Frontiers .
(2) Surface, Coast, and Rivers
Surface
Coast .
Rivers
(3) Climate .
(4) Sanitary Conditions
(5) Race and Language
(6) Population . ,
II. POLITICAL HISTORY
Chronological Summary .
SSSSS-i Treaty of Peking, 1808 \ .
StSSXbetweenJapanandOhin.,
May 1915 . • • ' -
III. ECONOMIC CONDITIONS
'•.■(A) Means of Communication
(1) Internal
(a) Roads • • •
■ (b) Rivers and Oanai .
(c) Railways
The Shantung Railway • •
The Tientsin-Pukow Railway . •
Projected Lines . • •
{d) Posts, Telegraphs and Telephones . •
(2) External
(a) Ports
v Accommodation . • •
Nature and Volume of Trade
Adequacy to Economic Needs .
^^SS^AWnOm Communications
Wt . 9014/849- 1000. 6/20. O.U.P.
PAGE
2
2
2
3
3
3
4
5
5
5
6
8
8
9
10
11
13
14
15
16
17
18
(1) Labour . 18
(2) Agriculture '
(a) Products of Commercial Value . . .19
(b) Methods of Cultivation .... 20
(c) Forestry . . . . , . .21
(d) Land Tenure . . . '. '. .21
(3) Fisheries . . \ . , , .23
(4) Minerals ....*'. 23
(5) Manufactures ....... 28
(C) Commerce
(1) Domestic
(a) Principal Branches of Trade . .29
(b) Towns 29
(c) Organizations to promote Trade and Com-
merce ...... 30
(d) Foreign Interests . '. '. '. .31
(2) Foreign
(a) Exports
• Quantities and Values . . . . 32
Countries of Destination . ... 35
(b) Imports
Quantities and Values . . 35
Countries of Origin . . . .37
(c) Customs and Tariffs 37
(d) Commercial Treaties . . . '. .38
(D) Finance
(1) Public Finance . . 38
(2) Currency . . ' ; .40
• (3) Banking . . " ' ' <> 41
AUTHORITIES ... 42
Maps . . . . .42
I. GEOGKAPHY PHYSICAL AND
POLITICAL
(1) Position and Frontiers
The seizure of Kiaochow Bay m November 1897 was
to Germany the lease iui v* j . certain
on both sides of the entrance , toto ^^^red
rights in a (neutral) zone of f 31 mri« > («nan ) ^
from the high-water hne of the bay. . ^ ^ the
contained certain concessions of mminj ^ l Q
construction of-railways, granted hy _ China to £ ^
The German leased ^^^^rf China,.
between 35 <±5 ana ou j. . about 200
and 120° 56' east i longitude .The ^J^ b is
square miles (exclusive , erf .the bay) a ^
about l^^^/^y^onsiBts of the two arms
2 miles wide. The .^rnTOiy foreshore, the
of Kiaochow Bay with the whole ^ tn rf
Hai-hsi peninsula m f e J,^f end, and the islands
the ^ngtaor^f^^l^tao, Tai-kung-tao
Cha^^
^are^ of tJneutral zone is about 2,500 square
*t S the Tsingtao j^J* t^flJw
on the west by the bay ^^n boundary follows
Sea ; the northern and north-ea ter^ ^^ to lts
fairly closely. the right banK the eagt
source in Rock ^^^^Z the east side of
boundary is drawn southwards
the Nan-yao peninsula. ^
GEOGRAPHY
(2) Surface, Coast, and Rivers
[No. 71
Surface
The greater part of the Tsingtao peninsula is covered
by the Lao-shan range with its ramifications, and the
Lao-ting peak (3,700 ft.) is the highest elevation in the
eastern part of Shantung. The hills spread westward
across the peninsula towards Kiaochow Bay, which is
fringed by a narrow strip of low-lying ground.
Though the greater part of the territory is moun-
tainous, the valleys and low ground along the hay
have a fertile soil providing a great variety of crops.
About three-quarters of the area in the leased territory
is under cultivation.
Coast
At the southern end of Kiaochow Bay is the hilly
peninsula of Hai-hsi, on the south side of which is
Arcona Bay, affording a sheltered anchorage for junks
and vessels of less than 13 ft. draught. Kiaochow
"Bay is bordered on the north and west by low-lying
ground. The depth at the entrance ranges from 10 to
30 fathoms, but it shoals towards the north and north-
west. The city of Kiaochow itself, once a seaport, is
now 5 miles inland, and its harbour, Ta-pu-tou, is
only serviceable for junks and shallow-draught boats.
In the south-eastern part of the bay there is anchor-
age for large vessels. The Germans have built a large
harbour for big vessels, a smaller harbour for boats, and
a landing-pier for boats in-the south-eastern corner of
the bay.
The coast from Tsingtao promontory eastward is
rocky, and indented with small bays, mostly shallow.
There is a good and secure anchorage in Lao-shan
Harbour, and on the eastern side of the peninsula there
is the large Lao-shan Bay.
Rivers
Five rivers flow through the leased territory— the
Paisha-ho ; the Litsun-ho, which is joined near its
oaochow] SURFACE ; RIVERS, ETC. 3
mouth by the Chang-tsun-ho flowing across the
district into Kiaochow Bay ; the Chuwo-ho, flowing
into the Sha-tzu-kow Bay ; and the Prince ™
which flows into Lao-shan Harbour. These r vers , we
dry most of the year, only the upper courses havmg
water at all seasons. In the rainy ^^egM
rapidly, and can then be crossed only at ^ e fords-
The beds of the rivers are always dangerous, owing to
numerous quicksands.
(3) Climate
The climate of Kiaochow is that of & northerly , Chma,
and is warm and moist durmg the summer, in
pleaslnS .2S are * -m the beginning o Apnl^
the middle of June and fromW^ & P ^
to the end of November Frc ^e miaai
the beginning of August is a ramy season xn
northerly to north-westerly winds prevail.
(4) Sanitary Conditions
Tsingtao is p."^*^:^
drainage, clean streets, and careim favo urite
tically the place ^ Wealthy and mdeedj
summer resort for -European s „ R ^ on ^
SSSSR 5 St&5 5 MW5C
k^^Xff^^^" be sufficient
Section against diseases.
/5) Race and Language
• • Lhitants of the leased territory are
Th e nati^^SeS speaking the Shantung
practically all P, U J° habits, manners, and customs
dialect. T ^ e Sner n £nese in general of whom
GEOGRAPHY
[Mo. 71
examples. Under the Germans Tsingtao grew into an
important trading and industrial centre with a large
commercial population. Numerous schools were started
under German initiative, and the teaching of the Ger-
man language was vigorously pushed.
(6) Population
Tsingtao has grown rapidly from a fishing village
into a large modern city of the European type. In
1913 the population of the leased territory was 192,000,
or 960 to the square mile. This includes 53,812
Chinese, 2,360 Chinese ' water population ', 4,470
Europeans, of whom 2,401 were military, and 342
Japanese, Koreans, &c. The population of Tsingtao
in 1913 was 60,484. The remaining population is
scattered throughout the territory in 311 villages, of
which Seu-fang and Tsangkow on the railway and
Litsun are the most considerable. The population
of the neutral zone is about 1,300,000.
It is calculated that 250,000 labourers emigrate
from Shantung every year to Manchuria, leaving in
the spring and mostly returning in the autumn. Coolie
agencies and lodging-houses have been established at
Tsingtao to assist in this traffic.
Kiaochow j
II. POLITICAL HISTORY
[This section is intended to be read in conjunction with CUna,
No. 67 of this series.]
Chronological Summary
1897. Seizure of Kiaochow by ^e^ny
1898. Treaty of Peking between China ^and uer y ^
1913. Mining rights exchanged by Germany P
1914. Ja^^tum to Germany (August 15).
1914. Japanese take Kiaochow ^^fj^ and China.
1915. Arrangements concluded between dap
rm. -Rav of Kiaochow had figured
Introductory.— ±he Jsay " • j bases a nd
prominently in *"™Z<ZA to *******
harbours for some yea « pre™* wag ne rally con-
Germans in November 1S» /. » digtrictj and
sidered that Russia had designs nP°n f Germa ny
it was assumed at the time that the ^ ^ nary
could not have been undertak ™™ J
understanding ^^J"fp e Ung, 1898.-The murder
German-Chinese TreatyJJe^, fectU re of
of two German missionanes £ ible pre text
Tsaochowfu in f^^and the German occupa-
for the seizure of & a °f ^ , an ^
tion was legged by a treaty g ^ x
March 6, 1898 ^^^dr it advisable to
™™1 Chinese Government appr eciation _o.
to
give a special proof oi tnei ^ Germany'. By
Z friendship, shown to Jhem^ y ng
Article I Ch T' d* Ho incfease the military readi-
with Germany _ and ; engaged while re-
ness of the Chm e -£ P t the free passage
c Pr vins sovereign "gnts, > v 5Q kllomet res
rfSS»»- ^ZStog E™cho W Bay at high
nnn Chinese h) surrou
6
HISTORY
[tto.
n
water, and to abstain from taking any measures
therein without the previous consent of the German
Government. At the same time China reserved the
right to station troops in that zone, ' in agreement
with the German Government, and to take other
military measures '.
Under Article II, ' both sides of the entrance to the
Bay of Kiaochow ' were ceded to Germany on lease
' provisionally for 99 years . . . with the intention of
meeting the legitimate desires of H.M. the German
Emperor that Germany, like other Powers, should hold
a place on the Chinese coast for the repair and equip-
ment of her ships '. Germany engaged not to construct
fortifications in the territory thus ceded. 1
In Article III China agreed to abstain from exercis-
ing rights of sovereignty in this ceded territory during
the term of the lease and to leave the exercising of
those rights to Germany, who was to permit to Chinese
ships-of-war and merchant vessels ' the same privi-
leges in the Bay of Kiaochow as the ships of other
nations on friendly terms with Germany '.
Fall of Kiaochow, 1914.— -On August 15, 1914, 2 soon
after the outbreak of war, Japan addressed an
ultimatum to Germany requiring her ' to deliver on
a date not later than the 15 September to the Imperial
Japanese authorities, without condition or compensa-
tion, the entire leased territories of Kiaochow with a view
to the eventual restoration of the same to China '.
The ultimatum was ignored; a Japanese expedition,
1 The boundaries of the leased territory were subsequently fixed
by a Sino-German commission. The results of its work are
summarized on p. 1. The area allotted to Germany was very much
larger than would be expected from the wording of the treaty.
2 The ultimatum was drawn up at a Council of Japanese Ministers
on August 15 and handed to the German Ambassador the same
evening. It was simultaneously cabled to the Japanese charge
d'affaires at Berlin, where it arrived on the night of the 16th and was
formally delivered on the morning of the 17th to the German
Minister for Foreign Affairs (Japan Year Book, Tokyo, 1915, p. 770)
See Japan (No. . 73 of this series), p. 94, and China (No. 67'
p. 91. • '
^aochow] TREATIES OF 1898 AND 1915 7
to which was attached a small British force landed in
Shantung, and ^tK
Arrangements concluded between '»£» , c ,.
whose territory was -f^J ^^tod that they
military operations, the ^ me , se ™ rances f ro m Japan
had received formal and definite assurances irom y
that Kiaochow ^£™^£^'*?™te-
is no doubt that the British i*w r Japanese
stood at the beginning that^ th ^ ^ odificat f ons in
aim and intention. But before .long , ^
the attitude of Japan were observed an ^
1915 a series of demands ™™™™ a UP e ° ments , re -
Negotiations f ollowe an by ^ ^tefin M ay 1915
corded in treaties and exchange oi ^ assent
the Chinese Government agreed to B Government
upon all matters upon which the J apaaw Govemment
might thereafter agree with the ^e and
relating to ^fpg^f*^ of treaties or
concessions which ^™** ' ovince of Shantung, and
otherwise, possessed m tne pio terr itory of
Japan undertook to restore the ^ase fo]]owing
Kiaochow to China after the war
C °l di ThTwhole of Kiaochaw to be opened as a com-
mercial port. . . Aor . +h(> exclusive jurisdiction of
4 an t rrs.« jf : s- **- * «•
J TTt£°toS e Powers desire it, an international
=npV-s»&in g s.
[No. 71
III. ECONOMIC CONDITIONS
(A) MEANS OF COMMUNICATION
(1) Internal
(a) Roads
In the southern portion of Kiaochow, not far from
the sea, a road runs from Tsingtao to the Prince Henry
Hills and Sha-tzu-kow Bay.
A macadamized military highway runs north from
Tsingtao to Tsangkow. Near Tsingtao, a road diverges
from it and leads to Hohsi and Litsun. From Litsun
it is continued to Chiushui in the Lao-shan valley,
along which the Chuwo river flows, and thence to
the Mecklenburg Convalescent Home in the Lao-shan
Hills. From the Home the road passes into the
Felsenthal or Paisha-ho valley, and so to Precipice
Pass and the German frontier in the north-eastern
corner of the Protectorate.
From Chaotsun, on the northern frontier of the
Protectorate, a road runs up the valley of the Paisha-ho,
and there is also a road from Sha-tzu-kow Bay to Irene
Vande, a cottage erected in the Lao-shan Hills by the
Tsingtao Mountaineering Club.
There is no road leading from the Protectorate
into the province of Shantung. Such roads as exist
are of the most primitive sort. The only wheeled
vehicle in general use is the well-known Chinese hand-
barrow, upon which considerable loads can be moved
by one man. Pack-animals are the most common
means of transport.
(&) Rivers and Canal
The Protectorate contains no navigable rivers, nor
are there any entering the Bay of Kiaochow from
^aochow] ROADS; RIVERS; RAILWAYS 9
Chinese territory. Navigable canals are also lacking,
but there are the remains of a canal, constructed in
the thirteenth century, which ran northward across
the narrowest part of the Shantung peninsu from
Kiaochow Bay, thus enabling vessels to reach the
Gulf of Pechili from the Yellow Sea wxthoutdoublmg
the Shantung promontory. No attempt towoon
struct the canal has been made in ^^^f'^!
the desirability of doing so deserves serious con
sideration.
(c)' Railways
The Shantung Railway, -Immedi iat $M^J*J
cession of Kiaochow a powerful 1!^°™$^
and financiers, including *^ ^°T,_ he Bank , the
the Deutsch-Asiatische Bank ^^^^nk,
Bank ffir Handel und Industrie the Dr^ner ^
S. Bleichroder, R. Warschauer ^J^^^.
of Frankfurt formed a t Be dm the S W^g* ^
bahngesellschaft, in order to " , th Conven-
mining concessions granted ^ ^^S, odied in the
tion of 1898. The railway concessions em „* ai
treaty comprised (i) atoeto mTW ao ° from
(ii) a LeJmTsinanfu to ^^^^b granted
Tsingtao to Ichowfu. The minmgc the
the Exploitation of all fjT^Z^Z mineralS '
railway lines. ^ .^^^B^gbaugesdlschaft,
a second company, the kcnantung B owing to
was simultaneously formed which bow ^ ^ ^
financial difficulties had to be boug^P J company
way company m 1913 (ct. p. ^h from Tsin gtao
set to work at once and the mam n ^ ^
to Tsinanfu, 256 mdes ong «P 8 ^ long ,
A branch from Changfaen ™ f 'Tsaochwang
was opened in 1906, and ano her ^
to Taierchwang 26 m le long, * . g gin le>
The gauge is 4 ft. 8J ^f £ eoLtructed to admit of
but the earthworks have been co ^ f
l^tVm^TomZ stock consisted of
10
ECONOMIC CONDITIONS
[no. n
41 locomotives, 110 passenger cars, and 1,051 goods
cars.
The following statistics show the amount of passenger
and goods traffic on the railway from 1910 to 1913 :
1910. 1911. 1912. 1913.
Passengers . . 654,128 909,065 1,230,043 1,317,438
Tons of goods . 769,192 717,189 852,001 946,610
The treaty between China and Germany provided
for the co-operation of Chinese capital in the under-
taking, hut no advantage was taken of this provision,
the Chinese having a deeply-rooted prejudice against
investment in companies. The capital of the company
in 1898 was 54,000,000 marks, or £2,700,000. This
was increased to 60,000,000 marks when the company
took over the Schantung Bergbaugesellschaft in 1913 (cf .
p. 25). The cost of constructing the line was nearly
£2,650,000. The following dividends were paid in the
seven years following the completion of the main line :
1905, 3J- per cent. ; 1906, 4£ per cent. ; 1907, 4| per
cent. ; 1908, 4f per cent. ; 1909, 6 per cent. ; 1910,
6J per cent. ; 1911, 6 per cent. The receipts for 1912
were 9,292,466 marks (£464,623), and the expenses
2,464,629 marks (£123,231), so that the balance-sheet
showed a profit of 6,827,837 marks (£341,392).
The most important stations on the railway _ are
Tsangkow, within the Protectorate, Weihsien, a colliery
centre (cf. p. 24), Tsingchow, and Changtien, the
junction for the branch line to the Poshan coal-field.
The railway is now being worked by the Japanese.
The Tientsin-Pukow Railway. — The option of con-
structing aline from Tsinanfu tolchowfu was included in
the concession to the Schantung Eisenbahngesellschaf t.
In 1897, however, a Chinese, Yung Wing, had obtained
a concession for a railway from Tientsin to Chinkiang,
and had arranged to borrow money for it from an
1 In September 1913 an old narrow-gauge salt line connecting
Hwangtaichiao on the Siaoching-ho with *Lukow Harbour on
the Yellow River was reconstructed in order to be linked up with
the Shantung Railway by a short line then under construction. The
line was expected to be a valuable feeder for the German railway.
Kiaoohow]
EAILWAYS
11
Anglo-American syndicate. The Convention of Kiao-
chow interfered with this concession. Yung Wmg
withdrew, and German and British capitalists came to
terms in 1899, forming a combined Anglo-German
syndicate, and agreeing that the northern section erf the
line from Tientsin to Chinkiang should be built by
German and the southern by Bntiah oaptal Ihe
Chinese, however, insisted that the line : should J,e
a Chinese Government railway, and the Germans can,
sented ; but the Boxer risings held up the execution
of the contract till 1905. The terminus w^ » then
changed from Chinkiang. to Pokow ™<$*J*^™£
connLionwithNan^
loan was If^L^to ^'be German (contributed
of which £6,500,000 was w uo " v. _„ _ 00 qq
British supplied chiefly by the ™™°" , . Bankins
Corporation and the Hong Kong and Shanghai Banning
Corporation). , , t Hanc hwang,
Xhe G«" C Ss S g feu* was subsequently
Chentangchwang-Liangwangehwang 16 mfl^ . h
cheng-Tsaochwang (a coal line h?™™ L kow _
19 miles ; ^^of^TitTmtlveA^-GTmi
Hwangtaichiao, S f f^f^n ^ e Une ^connected with
t C K;h„ig m MouHen T Cwat^ - ™» with
. % S STh g eitp»y's accounts showed a deficit of
- £245,625. making the agreement regard-
Project^ Lines.-to. S^ g Railway, the Germans
ing the ^^^^^ a^ from Mngtw
reserved their right to °^™ vemment raised dim-
to Ichowfu. The Ch £f° ^ eed ear ly in 1914 to
culties, but after nego* gto«UMg eed^ J ^ ^
the construction at a ^ on the Ts i ng tao-
Kaomi, a little west of ^aoch^own, ^
^S^^ at a pointa Uttle
12
ECONOMIC CONDITIONS
D
No. 71
to the north of the Grand Canal. The company work-
ing the new line was to have running powers over
a section of the Tientsin-Pukow Railway. The under-
taking was to be a Chinese Government railway under
German direction, with German engineers and accoun-
tants, and with German capital and materials ; but
Germany was to give up her mineral rights along the
whole length of the line.
Simultaneously the Germans obtained the right to
build an extension of the Shantung .Railway from
Tsinanfu to Shunte, or some point between Shunte and
Sinsiang on the Peking-Hankow Railway. The first
idea seems to have been that the terminus of this
extension should be Chengting, also on the Pekin-
Hankow line, whence a Russian-built line runs to
Taiyuah in the province of Shansi, which contains the (
richest coal-fields of all China. This project seems,
however, to have been definitely abandoned. Like
the Ichowfu Railway, the Tsinanfu-Shunte extension
was to be a Chinese Government railway under German
direction, with German engineers, accountants, capital,
and material. It was suggested that this line might
later be continued westwards to Luanfu in South Shansi.
Another plan which had not matured in 1914 was the
construction of a line from Yenchow on the Tientsin-
Pukow line to Kaifeng, the eastern terminus of the
projected Belgian railway through the province of
Honan to Hsien in Shansi. The route for this German
line was surveyed as far back as 1910.
Great advantages, actual or prospective, were offered
to German commerce by these projected railways..
By the Shantung line and its branches, Germany
tapped the trade of northern Shantung, and the
Tientsin-Pukow line gave her access to Chihli and
south-west Shantung. The Ichowfu line would have -
opened up eastern Shantung; the Shunte exten-
sion would .have extended German influence into
western Chihli ; and lastly, had the Kaifeng plan been
brought to maturity, Germany would have had an
open door into Honan and Shansi.
Kiaocow] RAILWAYS ; POSTS, ETC. 13
Opposition to German railway ex pansion in N orth
China showed itself not only in diplomatic delays ^ and
the unalterable resolve that the new '^^J^
come under the control of ^ hme ! G ^J^Ze^e
but also in a plan, advocated with great zeal m Cheese.
circles, for the building of * ^"^^to^
Weihsien to Chefoo, with ^ ^ eci ^{ZlSmtum
latter port its lost commercial ^^^J^the
The Chinese Imperial Bank P r « mis f/^f t h e scheme
amount raised was totally inadequate, and the scheme
W Wrtr^f a prophetic turn have ^ £• P-J
■bi]ity of a great railway acfss Centr^ IX^-ho,
cutting through the mou— be ^ * & ^
Honan. Of such a ra i way Tsmgtao^ ■«
minus, but if Shanghai which would J*™ *
superior claims, were preferred, ^f^^ •
rate be the terminus of ^P^S^TooiiBtraflt
In 1915 Japan demanded l the ngn QiJf
a line from Weihsien to Lun ^^ t P °r C hefoo ; but
of Chihli, about 60 miles north- west o ^ u^^ tQ
China refused to consent and e- ^pre ^ hgien to
herself the right to build a line from
Chefoo, via Lungkow.
(J) Posts Telegraphs, and Telephones _
the Protectorate and their own P ^ Impenal
Laichow, Tsingchow, and x e Maritim e
Customs, but has . be ^ »^May 1911. It supple-
Posts and Communication sn« 7 ^^ d
ments the I cha "^ or ^°J ttTagencies, which formerly
ment in 1^ , „
project themselves.
14
ECONOMIC CONDITIONS
[Ho. 71
Before the war the usual route for mails from Europe
to Tsingtao was by the Siberian Railway to Dairen
and thence by steamer. Letters between western
Europe and Tsingtao took from 17 to 22 days in transit.
The telegraph system runs along the whole length of
the railways ; and from Weihsien on the railway
a telegraph line runs to Laichow, where it bifurcates,
one branch running to Tengchowfu and the other to
Chefoo and Weihaiwei. There is also a telegraph line
from the town of Kiaochow to Pingtuchow and
Shaho, where it joins the Weihsien-Laichow line.
Within the limits of the Protectorate, Litsun and the
Mecklenburg Convalescent Home on the Lao-shan Hills
are connected by telegraph. . '
There is a telephone system in Tsingtao, and the
tops of all the surrounding hills are connected with
a central office by telephone for military purposes.
(2) External
(a) Ports
Accommodation. — The port of Tsingtao is situated
within the Bay of Kiaochow, a large land-locked arm
of the sea, with an entrance two miles in width and
a depth of at least 60 ft. at its shallowest point.
There are two harbours, known as the Great Harbour
and the Small Harbour, both artificial, and both
situated on the north side of the Tsingtao peninsula.
Between the two is a small area known as the ' Building
Harbour ' (Bau-Hafen), which is intended for the con-
struction and repair of junks.
The Great Harbour consists of a water area of 730
acres, enclosed by a mole shaped like a horseshoe and
3| miles in length. The entrance is 984 ft. wide ;
a channel, dredged to a depth of 28^ ft., leads up to
it, and a considerable portion of the harbour area has
also been dredged to the same depth. On the east
side of the entrance there are two straight moles
parallel with one another, which form the principal
Kiaoc^w] TELEGRAPHS, ETC. ; PORTS 15
discharging and loading wharves of the port. Both
are 558 ft. in breadth, and are well supplied with
warehouses and cranes. There are berths for 30 vessels.
Railway lines connected with the line to Tsmanfu run
along both moles. A little farther north, where the
horseshoe mole joins the land, there is a wharf for
petroleum steamers, with storage tanks m its vicinity.
At the sea or western end of the horseshoe mole there
has been constructed a broad quay, on which there is
a shipbuilding and repairing yard which belonged to
the German Government, and a smaller yard and
a machine shop in private ownership. Connected _ with
the Government yard is a floating ; dry dock whichi^
400 ft. long, 120 ft. broad, and 32 ft. in depth, andean
accommodate vessels up to 16 000 tons Am Iway
line running the full length of the horseshoe mob and
connected with the Tsinanfu line serves the yards and
Sh S tnot^r SS ^ov^escribed c— es
the Free Port (Freihafengehet) ™^ ™^£
customs dues on ex ports or import ^™^m
limited district replaced m 1906 the tree ™ne,
that date included the whole ^f, ™^^ 37 f
tion was made for reasons referred to below (g ^
About a mile to the ^fj^f^ Smal i
outside the bounds of the ■, bree rorc,
Harbour, used by coastmg .and ^f h ^ m xendered
shelter offered ^ Xtnstuctt of two moles,
more complete by the const ^
o ?r tctJofwaTe? has f"n made mto^e
S±£ S l^L^&^^o a wharf on the
north side. ^ Hnnal anc horage with fairly good
A her6 „ffi Z souS sUe of the Isingtao peninsu a,
shelter off the soinn , £ petroleum vessels.
%> Stati TaX e ha™ been erected o„?he shore elose by
Storage tanks have d _ since the opening of
the^S WoTa^ Tbeen visited by an increase
16
ECONOMIC CONDITIONS
[No. 71
number of steamers yearly. The figures for the period
1906 to 1913 are as follows :
1906-7.
1907-8 .
1908-9 .
1909-10
1910-11
1911-12
1912-13
No. of Steamers.
499
432
511
568
618
785
923
Aggregate Tonnage.
546,843
519,292
670,025
806,759
1,070,702
1,209,154
1,298,622
In addition the port is frequented by numerous
junks, which load and discharge in the Small Harbour.
The goods passing through the port of Tsingtao are
mainly in transit, as few -of them are produced or con-
sumed within the bounds of the Protectorate. The
principal commodities shipped or discharged at the port
are reviewed below (pp. 32-37), where detailed statistics
are also given. It should be noted, however, that
Tsingtao is a great coaling station, and that the bunker
coal taken by ships is not included in the export
returns. •
Adequacy to Economic Needs. — Tsingtao port has
been laid out on extensive lines with a view to develop-
ment, and will probably be able to meet all demands
upon its accommodation for some time to come. In
the Great Harbour quay space could be considerably
enlarged without unduly curtailing room for anchorage.
Owing to the Shantung Railway, Tsingtao has
become the most convenient port for a large region.
Its rise has caused great loss to Chefoo, which for-
merly had almost a monopoly of the foreign trade of
Shantung, and the Chefoo merchants attempted,
without success, to organize a boycott of the German
port. Even Tientsin was menaced by the rapid
rise of Tsingtao, especially after the construction of
the Tientsin-Pukow Railway. The great advantage
of Tsingtao over Tientsin lies in the fact that while
Tientsin is usually ice-bound for some months in
winter, Tsingtao is nearly always ice-free. For summer
trade, however, Tientsin will probably remain more
Kiaochow] PORTS ; SHIPPING LINES 17
attractive to merchants of the adjacent inland districts ;
and it is significant that during the winter of 1912-13
the Tientsin river was kept open by ice-breakers. Ine
Germans, indeed, were somewhat apprehensive lest
the new Tientsin-Hankow Railway might divert trade
from Tsingtao, but there is no evidence available as
to the effect actually produced.
The construction of the projected railways described
above (p. 11) would doubtless bring a great volume ot
new trade to Tsingtao.
(b) Shipping Lines
The Hamburg-Amerika Linie maintained a weekly
f Jght strv" e and a monthly passenger sarv^brtween
Shanghai and Tsingtao, and the ^° °°*^
coasting steamers called at Tsingtao on their voyages
between Shanghai and Tientsin.
^Ssatshosen Kaisha ;ran steers *™e monthly
from Kobe to Tsingtao, returning thence to 0***
tL .Smith Manehurian Railway Co. s steamer
JEd atMngtao once a weeh on its voyages between
Dairen and Shanghai. following lines from
^-Jr^zi^^ ^ -
T tf The Norddentsc ^^^^1 ^
h 1rlltX vovagesfand wonl have been visited
call on alternate voy g , rf wM
every voyage. ™™™^ Linie bega „ in 1914 a serv.ce
The H^S^d American Pacific ports ma the
between Hamburg ana am ^^ voyage
SmSe b^hXama cLl Tsingtao was one
of the ports ° £ ca "; Penins ular and Oriental Steam
Halation Co! Ltt cLd on their fortnightly voyage,
18
ECONOMIC CONDITIONS
[No. 71
between Bombay and Japan, and those of the Messa-
geries Maritimes on their monthly voyages between
Marseilles and Japan.
_ Steamers of the Great Northern Steam Naviga-
tion Co., an American line, touched at Tsingtao on
their voyages between Seattle and Shanghai.
Tsingtao was thus served by a number of important
lines and connected with all parts of the world by first-
class steamer services. This was due less to its com-
mercial importance than to its advantages as a coaling
station.
(c) Telegraphic and Wireless Communications
In 1914 Tsingtao was connected by maritime cable
with Shanghai and Chefoo, both Jines belonging to the
German Imperial Postal authorities. From Shanghai
there are cables to Hong Kong, Japan, and Europe,
owned by the Eastern Extension Telegraph Co., and
Chefoo has cable communication with Dairen in Man-
churia and with Tientsin. The Chefoo-Dairen cable is
Japanese Government property.
■ The German Oriental Wireless Telegraphy Co. had
a wireless installation at Tsingtao.
(B) INDUSTRY
(1) Labour
Shantung is the most densely populated province
of China, so that the Kiaochow Protectorate had
a large reservoir of native labour to draw upon.
Moreover, the political disturbances in China led
to a considerable immigration of Chinese into the
German Protectorate. The population of Tsingtao
itself rose from 14,905 in 1902 to 40,264 in 1910 and
60,484 in 1913, and large numbers of Chinese workmen
live in the villages on the flat ground north-east of the
Moltke and Bismarck Hills. It illustrates the deter-
mination of the Germans to make the fullest use of
the available labour supply that the German Chamber
of Commerce arranged for workmen's trains in certain
districts.
Kiaocow] LABOUR; AGRICULTURE 19
In 1900, as there were no craftsmen at hand, the
skilled labour required for the building of Tsuigtw
and its harbour works had to be got from Shanghai
at high wages. The Germans, therefore opened at
Tsingtao a technical school for young Chinese^ The
studtnts worked for four years »* WJ™ J^&
they then received an apprenticeship certificate but
we/e obliged to remain ^^J^JS
service. of the dockyard By 1911, ^* "J? MUed
were working there, and wages .had fallen skiUea
workmen from South China; who had at one .tone
received as ^^ r ^^S^^^
al^1»^
China as a whole, which was 0-52 dollar.
(2) Agriculture
(a) Products of Commercial Value
The soil of the ^^f^^^^
to the la'rge quantity of potasMt>c cultivation .
the rocky nature of ™>°™£ %e the sweet potato,
Among the T^^Ctt the cultivated area, rice
which occupies about *»?\ pulse> hemp, and
wheat, y^l^JS^S^^ P earS ' ^ Ch
many kinds of ^^Zl Government was iintro-
are abundant. Th °^l and various fruits. Wmter-
ducing cotton, s^**£ ^ T d in June . the ground
sown wheat and ^1"^^, maize, and hemp,
thus freed is sown *** *fg ^ uly when buckwheat
Apples and pears are ripe n d y, cabbageg
is sown. In A^^^t harvest of the year
planted. In September tn e& ^.^ b
is reaped, consisting , <* ™ ^^ buckwheat
sesame, peas, and grapes an _ ^ ^ d
citrons, and ff»^J* T %\ r i y and wheat. In 1908,
20
ECONOMIC CONDITIONS
[No. 71
were sent to southern China from Kiaochow. Fruit
plantations are especially numerous in the valley of the
Paisha-ho, on the slopes of the Tungliu-shui hills, near
Tengyau, and in the hilly country south of Litsun.
The » taste of Chinese fruit is not liked by Europeans,
but it can be improved by grafting the trees with finer
varieties, and the Forestry Department of Tsingtao was
encouraging this process. Native fruit often suffers
from a fungus, but this does not seem to attack German
varieties.
Kiaochow is poor in animals, both wild and domestic.
The Chinese peasants breed oxen, donkeys, and mules
for work in their own fields, but the only animal which
they breed for commercial purposes is the pig. The
Tsangkow breed is the most common, its flesh being
highly esteemed by the Chinese, though not palatable
to Europeans. Large quantities of pork are sent to
other parts of China, and there is also an export trade
in pigs' bristles.
The Germans made an attempt to cross European
cattle with native stock ; at first the imported animals
died of disease, but a serum was discovered which
rendered them immune. The Germans also introduced
a considerable number of goats, chiefly Saaner goats,
for the sake of their milk: The lack of pasture-land
will, however, prevent any large expansion of stock-
raising. All meat consumed by Europeans is imported
from inland.
The rearing of silk- worms was being encouraged by
the German Forestry Department, but up to 1914 the
results were small (see below, p. 28).
(b) Methods of Cultivation
The Chinaman is one of the finest rule-of-thumb
agriculturists in the world. He lavishes almost limit-
less care and attention on individual plants ; he is
skilled in the use of manure ; and in the Kiaochow
Protectorate, as elseAvhere, he has made artificial
terraces to facilitate watering. His working of the
Kiaochow] AGRICULTURE; FORESTRY 21
soil is, however, too superficial, so that he does not get
the best out of it.
The German Agricultural and Forestry Departments
used to exhibit new implements and to provide instruc-
tion in new methods of agriculture, but their efforts
had little effect on the deep-rooted conservatism of
the natives.
(c) Forestry
Afforestation is greatly needed in China, where
centuries of uncontrolled timber-cutting, counter-
acted only by spasmodic and ill-organized planting,
have resulted in an almost complete denudation of the
country, to the great detriment of climate and soil.
In the Kiaochow Protectorate the German authorities
initiated very ambitious schemes of afforestation.
The Botanical Gardens of the ^^2.,^^"^
on the south-west slope of the litis Hills, exhibited
trees and shrubs which could be profitably grown
in Kiaochow. The Schantung Eisenb ah nge sellschaft
planted trees systematically along its line b and the
Government sold a great number of ^«^
especially acacias, which suit the soil an^ 1 F^
timber for pit-props (Y^^l^^^t
from Tanan} A special object of the forestry -L^pai*
mn/lt ttaUshment and devehopmg of^a sdk
ro$o r SL g y trees we «*«*d ; -^
I 1 !? 868 t7:mr e ZlTaZ e ^^e also.made
t%£Z'^ Unfortunately, aflorestatmn ,s
impeded by a prevalent timber pest.
(d) Land Tenure
„„ nMnined the lease of Kiaochow, all
, an Tin n ChhT S noSiV the property of the Em-
SE^-yESS'S-y yield a much finer prodaet.
22
ECONOMIC CONDITIONS
[Ho.71'
peror ; but m point of fact his subjects bought and
sold land as they pleased, and the Government did not
interfere so long as certain land-taxes were paid.
. No sooner had the Kiaochow Convention been signed
than certain Asiatic firms at Shanghai showed a desire
to speculate m land in the German Protectorate.
10 prevent this, the German authorities adopted a policy
suggested by the land system prevailing in several
Asiatic protectorates of the United Kingdom. They
laid down that land owned by Chinese might be sold
only to the local German Government, which, it was
lurtner decreed, was to have discretionary powers of
expropriation. The Government forthwith purchased, at
the current loca price, a considerable area of land, most
ol which it resold for as much as it could get, the new
owners being subject to a tax of.6 per cent! per annum
on the assessed value of their shares. The further
sale o± such land could only be effected through the
government, which made a conveyance or registration
charge of 2 per cent, on the price, and, if the seller
got more for the land than he had paid, took one-third
of his profit. Moreover, if land purchased from the
Government remained in the same hands for twenty-
ST® 5T' ■ ^f S J 50 be Sub J ect t0 re-assessment, and
t,ht ^ might ° aim one " thi rd of any increment in
Z? ^t SG ^ ulatlons kept down the price of land,
and.gaye the Government control over its use ; while
™J°f ^ ° n ° f deeds of sale y ielded a substantial
part of the revenue of the Protectorate,
^lt was expected that the system just described would
greatly encourage the establishment of industrial under-
takings within the Protectorate, but for some years
this expectation was disappointed, as Chinese capital
does not move quickly, and there was at first a strong
prejudice against the new-comers. As time went on, •
however, the demand for land increased. By 1912
none was to be bought in the vicinity of Tsingtao,
and m that year 226,000 square metres of land in
9«« S<? *f*? rate were sold, the aggregate price being
^588,500 dollars. Owing to the disturbances in China,
Kiaocow] LAND TENURE ; FISHERIES 23
large numbers of Chinese entered the Protectorate about
thit time, and the demand for building land .became
verv jrreat The yield of the land-tax m 1913-14= was
Sol, and exceeded by nearly £2,300 that in the
year before. .
(3) Fishbbies
About two years before the war Dr Glaue of Kiel
after making a close investigation of .the ^subject
recommended the establishment at Tsingtao ot an
institute for making expenment^th aj^
exploitation of deep-sea fisheries on •
coasts of China. The initiation of a Chinese enterp
with similar objects was knowm to ^ be unde ^
tion, and the success of an &^**£* * &
at Shanghai was held to )^ ^^l£poB»l
success. Nothing, however had ^come of ^ P .^ f ^
in 1914. WWleitiBtraellijAaGOTi^iun .^
fishing in Chinese waters f f ed ^^ capital. In
offers Veat .WV^™*"*Jg£& to China fish
1910, for instance, Japan J™™™ {oy er £600,000),
products to the value of ^,000,000 fl W^ n valued at
and in 1911 she exported to G ^3f s ^ a ble for the
£125,000. Kiaochow Bay !s WP"^ 8 ^ improved
fishing of oysters, lobsters, and eels and wl ^
methods of curing fish could ^fg^ tod-fish
far into the interior of China xn ^ ^
industry in other parts of the county
by the exorbitant price ot salt ^ g^g
The Japanese, in ^^f" 1 " now have included
carried on off the coast of ®^^$fo&r activities,
the Bay of Kiaochow m the sphere
(4) MlNEBALS
, a +« ftprmany contains no
The small territory leased to Germ J ^ Conven .
minerals,. but, as was ^Xlfmthlg rights in the
tion -of 1898 gave her valuable mj ^ ^ b
24 ECONOMIC CONDITIONS [»*»
in the Poshan valley, at Ihsien, and at Ichowfu; and
W. i T J° f these ' the Poshan val ley, coal had
been worked by Chinese from time immemorial.
Chinese mining methods, however, were very anti-
Sties WaS an alm ° st t0tal lack of trans P° rt
SoW+ tly a i ter 1 the si gning of the Convention, the
fcchantung Bergbaugesellschaft was formed to exploit
^JET concessions granted to the Schantung
m 1p^ A n i? eS r 11SCn . aft ' that is ' a11 niines within teS
TQn?^ • • xt was aphorized to construct. In
iit 1 ^ 'SfS c . om pany began to work the Fangtse
itaZl he . + Weihsie n coal-field, and in 1907 and 1908
oTr^ SS 8 near Weihsie n 5 the Minna and Annie, were
W wl- company set up in 1906 an installation
Ef ng C ,° al a " d in 1907 a briquette factory, as the
3 ; 1 was f onnd to be unsuitable for steamships
ZtZ 1\ K ■ be f* USed as ^iquettes. In 1908 the
Irel l£i br T ettes was 1 ' 800 ^ns, but the industry
fielJ t f ^ that date - The whole Weihsien
lav low it ' W disa PPointing results. The beds
nto T>n^T\ llable to be flooded ' a nd were isolated
Sant™! ^# ramte ; by 1912, furthermore, new
ThertT re * Uired > f ? r ^ich the company lacked funds.
new poL?° a J ailable information as to whether any
SeS I " ™ attem Pted, but the Weihsien
collieries do not appear to have been worked since 1914.
succeLX^^ 6 ^ 6 ^ 186 near Poshan was more
milpf £ ^ P f* haDL coal-field is a valley twenty
?, S a few hundred yards wide at -the eastern
Zvth \ broade * ln g to a width of six miles at the
north-western end. ABritish company had worked there
nitri mJ'w? 7? Ge rmans bought its machinery and
in 1 QHR ™ Eungshan colliery, which they opened
PrLl rS' ^ I a ) S0 sorted a mine at Tsechwan. The
Sj the Po shan fieM . g of better th ^
that of Weihsien, being similar to Cardiff and Buhr
?JrmT™* le for shi P s ' Doilers > though high in
ash, like all Chinese coals. •
After the capture of Tsingtao in 1914 a party of
Kiaochowl
MINEBALS
25
mining experts sent by Ja^n to the 6^*^
in the Poshan valley found th at essential machinery
had been removed and some of the mines ; flooded
Machinery was supplied, and the Tf?™?S
resumed work in January 1915 under ^mtend
ence '. In the following year ^average My^JJ
was 1,000 tons, the Shantung ^^^
tons a day. It was thought that . ifc P^^J^
be more than twice as great in 191b. xiie s .
colliery was also repaired and yielded _ 500 tons ^J
in 1915 ; but it is expected hat when ^eqmpm
complete its annual output will amount
700,000 tons. ^^vn+rmt, of the Weihsien
The following table shows the outpu ^ the
and Poshan coal-fields up to the outbreak w
1902-3 .
1903-4 .
1904-5 .
1905-6 .
■1906-7 .
1907-8 .
1908-9 .
1909-10 .
1910-H •
1911-12.
1912-13.
1913-14.
Weihsien.
Tons.
9,179
50,601
100,631
136,990
164,000
149,300
250,200
273,355
194,897
205,185
Poshan Valley.
Tons.
14,600
40,900
72,500
183,450
237,544
283,208
Total.
Tons.
9,179
50,601
100,631
136,990
178,600
190,200
322,700
456,805
432,441
488,393
S73,600
548,600
£600,000, which was found l ™ m f or tw0 ye ars
dends were ever paid A* rf Q ^ hanks
was obtained m 1908 trpmtnH^^ ^ ^
which had ^PP^f^tL on the Weihsien collieries
necessity for further ' °^ to come to terms with
compelled the mining company ^ ^ t
the railway company ml» ^ of the dwa y
the mining X P V S of £270,000, an d the capital of
Se" Say company was increased by £300,000.
26 ECONOMIC CONDITIONS [**.*
^ h e e mat r tpl 0f th ^ Scfc : ant ™g Eisenbahngesellschaft in
from ?T ?»T%°1 ^ lmng °P era tions may be gauged
raXat*™ ??\ m - 1912 the coal carried by the
SSXXT stXoZnf ' 000 t0nS ° Ut ° f a t0tal
auIumWW Un ^ Eisenba hngesellschaft was in 1914 in-
ewS ge £ on -mming operations at Kinlingchen,
on the Sb fl L n ° rt ^ ea f ° f the J unction ^ Changtien
and red iron g ^^ The de P osits of ^netic
^btes^n ssw by ^ scha ^ n , g
65 ner pp.i «S • ^ i 903 ; bulk samples contained
suXr aJ \\r n> °'° 3 ° f P hos Phorus, and 0-08 of
50 000 000 t™ f ^ nnt of ore was estimated at
for chel wn.i° f Wh ? h ?°' 00 °>°00 were well situated
rented ZJ ? ^ g - Lack of ca P ital > however, pre-
ttenintlfT™ 011 mxt h aiter the amalgamation of
was Ten \ e T T v P e rto Wlth ^ ? ilway COm P an ^ B
furnace at tt^J V?S!£^ JT 1BOmto \ h] °?
anticma+Prl +w g S r? J 915 ' and xt was confidently
£££rft£££ tt1c? ch r ir r would be *■»
an imoortsnt 5? ? ■ , K lao <=how Protectorate into
to n 3JKr&3^ tt r t iS^tf". also said
^^i^s^sr miles lon ^ with
engmL^Sl Wa l ° ffice Sent a P art ^ of mining
mines. ' the ^ are now working the
B^WrSfcl!^ ^fc^on of the Schantung
field wS 1 1^ t0 d , eVelop also the Ic howfu coal-
Th Tcommn fJZZT*?* "i the richest in Shantung.
demandsC^S vTT there in 1904 ' but ^ heavy
coSruction rff E* 3 ?*? el f e Z he ™ and the delay in the
prise The u^ ^ Railway checked the enter-
Eese but J V U C ° al 1S WOrked to some-extent by
the Cleans of > large . out P ut °an be looked for until .
grea^Tmp^d mUmCatl ° n * the Ve ^ have been
Kiaoohow] / MINERALS 27
Other German and Sino-German companies engaged
in mineral enterprise in Shantung deserve mention : _
The Deutsche Gesellschaft fur Bergbau und Industrie
im Auslande, founded at Berlin in 1900 and registered
at Kiaochow in 1903,- had five concessions : (a) south
of Ichowfu, for coal and diamonds ; (b) a circular zone
round Yischui, for gold; (c) territory south and east
of Chucheng for mica ; (d) a circular zone south-west
of WeihsienT for lead and coal ; (e) the whole territory
eastrf Tsimo, Pingtu, and Laichow, apparent^ for
any minerals that might be found It . e or foot
various enterprises, such as the crushing d Eaarf*™*
quartz at Ninghai, gold-washing f^^^J^
the development of mica deposits at Chucheng and
lead deposits south-west , o Weihsien; >d ^ Vjf£,
takings those at Ninghai and Chucheng appear*
have been the most prosperous, /he company s
iidve uo ^ x however, inadequate: it paid
capital of £84,000 was nowe , h [t went
no dividends up to 1»}1. *™ Zoneoi its concessions,
into.liquidation ^^^^Bflial Government
i^r^^l^^o statistics of its output.are
in 1880 to work at ^^^iSSSaku* which
In 1898 ; German cap ^^f^SLn-Chinese^Mining
was BubBequmtly^l^ at ^ ^ ioned
Company. lae tOTaJ pi^ 000 and a concession was
said to have been -£167,000 a™ hkt miles in
obtained for exploiting a d Btnc^v ^ & ^^
circumference, ^ ethe J ^l\^ h ltag, on the Grand
way from ^ och T%t ^tZoZxpSny is difficult to
Canal. The later history ^f the comp y ^ ^^
asoerta^butitapp^t^^au umably by
in German ^jTyJ^i GerSan loan of about
Chine S- ,°d n b^ ^ conSd for rolling stock, and
£39 '?° t had been obtained from Germany In
• machinery ha ^;f_ e output was 120,000 tons, and 500
^ n 2 *«25?*t that year the xnine, had
28
ECONOMIC CONDITIONS
[Wo. 71
been connected by rail with the newly-constructed
Tientsin-Pukow line, and the light railway to the
Grand Canal had also been finished. In 1913 a German
engineer discovered an important new seam on the
company's property, containing both coal and iron of
good quality. The company has been ' under foreign
supervision' since 1914. Its output in 1916 was very
good.
In the Poshan valley, besides the German collieries,
there are. mines owned by Chinese, which are said to
have produced 250,000 tons of coal in 1910. v
(5) Manufactures
Before the war the most ambitious manufacturing
enterprise within the leased area was the Deutsche-
Chinesische Seiden-Industrie Gesellschaft, registered at
Tsingtao in 1906 with a capital of £100,000, which
erected a silk factory at Tsangkow. Its special purpose
was the making of Tussore silk, obtained from silkworms
reared on oak-leaves. It had space for 200,000,000
cocoons, and an installation of 130 machines. Political
troubles interfered with its success ; it had to close
down temporarily in 1911, and up to 1912 it paid no
dividends. Information as to its present position is
lacking.
In 1908 a German-owned factory for cotton-spinning
and cloth-weaving, with modern installation, was
opened at Chi-mo-hsien, near Tsingtao.
There were also in the Protectorate two albumen
factories, Karl Ebers' and the Columbia, with a capital
of £5,000 ; a large brickworks belonging to H. Die-
derichsen & Co. ; two breweries, the ' Germania \
a branch of the Anglo-German Brewery Co. of Hong
Kong, and the ' Gomoll ' ; a factory for aerated
waters ; and a soap factory.
In 1914 various new projects were under considera-
tion, foremost among which was the scheme for iron-
smelting works (cf. p. 26). Others concerned Hour-
mills, oil presses, and silk- worm rearing. A consider-
Kiaocow] MANUFACTURES; COMMERCE 29
able number of small ^^t^^^S
capital had failed, in spite of cheap labour and plenum
C °In the last years of German rule there was ^onskler-
able development of Chinese mdustry ^^^..
torate. There had for some tune been Qw*» ^
mills in Tsingtao, and new P lans ^ J Xte-works,
the erection of timber-works cornel s **
and cement-works. Basket-makmg
industry at Litsun. ._ hich fin d an outlet
The manufacture of Shanton ,_
at Tsingtao are dealt with unaei t
(C) COMMERCE
(1) Domestic
(a) Principal Branches of Trade
Internal trade in the Jg*^^££
and fuel. The valley of f^™ HiUs grow fruit for
of the Tungliu-shm _ and ^f^ ^ llag | s , and in the
Tsingtao and 'the other towns ana ^ .^^ ig
Lao-shan Hills a brisk cb -^jj^out the Proteo-
se °^^^f^^ J the markets f or
tWistribution of fruit and fuel.
(b) Towns
• T< Q in(rt,Ro which lies on
The only i^^^-ao Kiachow
the peninsula to the .east c^ . . j d , an a
Bay: The name Tsmgtao^ s wh h h to ,
was originally toted to ^con ao ^ s b
the south of the town The p ^ th
described above; the towi^ ^ ^ gh s of
peninsula from *f G ^\£ east it is bounded by
? sing tao Bay f ^ on th ^ ^ the
a range of hills, on w r Station.
Government Hoo*^ jhe&ff^ . g E n
The BOutnern t Part t Ot ets ^ ^ ^ well _ kept ,
quarter. ■"•
30
ECONOMIC CONDITIONS
[»o. 71
and the houses, built after the European fashion, are
large and handsome. The Chinese population lives in
the northern part.
(c) Organizations to promote Trade and Commerce
At Tsingtao there were two Chambers of Commerce,
one German and the other Chinese. The German
Chamber of Commerce was very active, and besides
performing the usual functions of such a body, showed
a lively and fruitful concern for the interests of native
workmen. The Chinese Chamber of Commerce was
founded for the express purpose of establishing friendly
relations with other Chinese Chambers of Commerce,
especially those of Chefoo and Tsinanfu. The Chefoo
merchants had boycotted Tsingtao whgn it began to
threaten the interests of their town, and the new
Chamber of Commerce at Tsingtao was expressly for-
bidden to retaliate. \ Only Chinese merchants actu-
ally resident in German territory were eligible for
admission.
Of very great importance are the Chinese Trade
Guilds. They possess absolute power over their
members, not through charter or delegation, but by
reason of the Chinaman's innate faculty for combina-
tion. The Trade Guilds can seriously affect China's
relations with foreign countries; for example, they
can either completely or partially exclude any foreign
article from the markets. of the country, and the central
Government, even if it wished to do so, would scarcely
be able to interfere. Indeed, the Trade Guilds enabled
China to boycott Japan and the United States.
Iney regulate the relations of masters and men, arbi-
trate between their members, thus greatly diminishing
litigation, and facilitate trade by securing the general
adoption of their rules for the conduct of business.
The Trade Guilds must be distinguished from the
so-called Local Guilds, which are associations for the
mutual support of persons belonging to the same
district who have migrated to another part of China.
Kiaochow] COMMERCE; FOREIGN INTERESTS 31
Mention may be made here of an ancient and
important feature of commerce in the Far J^st— .
namely, the employment of compradores by Unnese
firms. The comprador is an English-speaking native,
who buys and sells for Chinese firms receiving 1 per
cent, commission on the business done, lhe com-
pradores are numerous, and form a strong barney bo
to speak, between the Chinese importer and the foreign
supplier. Foreign commercial travellers find them
a great hindrance, and in 1913 it was cognized that ■
the many new German buyers sent to purchase g ound
nuts, sesame, and cotton direct from the interior ot
North China would find it difficult to overcome their
opposition.
(d) Foreign Interests
In the territories affected by ^JJ^JgJ
between Germany and China, the ' s ™f ?™ u °* rial or
States natu^SSSeSU
Great Britain, the United States, and Japan
Britain is particularly interested m the ^W
Chester goods and petroled jtc > the d^ s ^ ^
Tsingtao, and British tra de £^P^_ qnflrt ers in
branches and travellers nrf ^"^J^. of an
Hongkong ,^..^^1^ to its success.
' open-door policy is es en ™ f the wa r there were
It is well to ™™ emhe lttJtie™t™tere& as British,
in the Far East many co gS e to the clause in
but in reality ^fvj^^i Empire forbidding
the company law otfeW F Th
the issue of .shares ; f ^ogated in 1911, but until
prohibition, indeed was abrog tock company
then there was ^J*^ Asia. The Chinese
reglSt f ,1 s'uch coTcems with suspicion, and will never
regard all sucn cim _ hence, before 1911, 11
A »«" »» ne t L M nd w' as formed with German
ip ? t 7ta operations in the Far Bast, it was always
a coi
ca
32
ECONOMIC CONDITIONS
[No. 71
registered at Hongkong as British, so that it might
issue small shares.
Like Britain, the United States supplied much of
the petroleum imported at Tsingtao, which was an
important centre of the activities of the Standard
Oil Company.
In virtue of her treaty of 1915 with China,, Japan
now regards herself as the natural heir to Germany's
economic rights in the Kiaochow Protectorate and
Shantung ; and if she is allowed a free hand will
doubtless adopt vigorous measures to promote and
safeguard her industrial and commercial interests. It
is significant that when in 1916 the Siems-Carey
Company, a combination of American interests, ob-
tained a contract for the dredging of the Grand Canal,
Japan protested on the ground that Germany's rights
under the Kiaochow Convention had devolved upon
her, and so far carried her point that the company
allowed Japanese capital to participate in the under-
taking.
(2) Fokeigts"
(a) Exports
Quantities and Values—The German Protectorate
had little foreign commerce in the strict sense of the
term, and up to now the prosperity of Tsingtao has
depended almost entirely on transit trade to and from
the province of Shantung. This traffic is of great
volume and value.
Among the most important of the commodities
shipped at Tsingtao are ground-nuts and ground-nut
oil. The shelled nuts exported were valued at £8,300
in the year 1906-7, 1 at £409,450 in 1909-10, and at
£569,100 in 1912-13. The value of the export trade in
unshelled nuts has varied very much; in 1910-11 it
was £32,800, but in 1912-13 only £15,450. The
quantity of the ground-nut oil sent abroad has likewise
fluctuated greatly. It was valued at £150,650 in
1 The financial year of the German Administration ran from
October 1 to September 30.
Kiaochow*]
EXPORTS
33
1906-7, and at £174,750 in 1909-10, but the s figures for
the intervening years were much larger. In ■ 191'™
the value of the oil exported was estimated at £359,d5W,
and the acreage under ground-nuts and the number
of oil-presses in Shantung were said to be rapidly
Bean oil from the soya bean has recently become
one of the most considerable exports from the ports-
of the Ear East. The harvest is very variable and the
consequent fluctuations in the trade are well illustrated
by the following figures for Tsingtao : £
Tonfi-7 • • 131 ' 600
1906-7 . . • • 80 900
jooo-io : : ; : : J!S3
The manufacture of straw braid * £ *^™*
home industry in Shantung, and ™ f^f* ™ £
the Germans. The export reached its ; highest .point m
1911-12, being valued that year at ^f°^jQ
variations of the trade are shown by the following
figures : . £
' . ' 520,800
1906-7 • • ' * 1,040,200
1909-10 . • • • • ' 879j 500
1912-13 . • • • . '
dales are given in the following table:
! 906-7. 1909-10.
£
•iir • 244,050
Yellow silk
Pongee silk .
Silk waste .
Total ■ • 450,600
103,500
103,050
, £
206,100
263,100
19,350
1912-13.
£ .
375,350
400,450
53,100
488,550 828,900
34
ECONOMIC CONDITIONS
[.Ho. .71
meat grew up, rising in value from £16,90$ in 1909-10
to £133,550 in 1912-13. Live cattle were exported in
summer and frozen meat was sent abroad in winter.
In the decade before the war, cowhides were being
exported from Tsingtao in increasing quantities, as is
shown by the following figures :
■..'•■■£
1906-7 . . . . , . 50,900
1909-10 . . . ... 66,300
1912-13 . .. . ....... . 158,450
-There was an export of goatskins, which was of an
average annual value of about £13,000 between 1906
and 1913, the maximum, £37,500, being reached in
1911-12. Dogskins were also sent abroad, but this
trade was of small note.
Yolks and whites of eggs for industrial purposes
began to figure in the list of exports in 1909-10, with
a value of £8,050, and rapidly became of importance,
being valued at £87,050 in 1912-13. ,
.v Shantung coal, first exported in 1909-10, was shipped
in growing quantities in the succeeding years. The
value of the coal exported from Tsingtao in 1909-10
was £71 ? 000, arid the figures for the next three years
were respectively £70,500, £128,650, and £129,650.
These statistics leave out of account the bunker coal
taken, by vessels calling.
Other commodities exported through Tsingtao are
black dates, walnuts, fresh, and dried eggs, melon seeds,
macaroni, tallow, bristles, salt, and glassware. The
trade in each of these, though of no great moment,
was, on the whole, expanding during the period 1906-13.
The figures for the total exports of Tsingtao from
1906-13 are as follows : * ......
— 1906-7 . . . . 1,711,250
Kiaoohowl
EXPORTS; IMPORTS
35
1907-8
1908-9
1909-10
1910-11
, -1911-12
.1912-13
1,629,850
2,367,200
2,736,600
3,028,050
4,019,750
3,982,000
Countries of Destination.— It is somewhat difficult to
ascertain the final destination of. goods shipped from
a port like Tsingtao, with a transit trade, and served
largely by vessels engaged in coastwise traffic. Only
a small fraction of the exports— valued m 1912-13 at
£43.000— was sent direct to Germany, the yolks and
whites of eggs being the sole items of much consequence.
In recent years European countries have been .taking
increasing quantities of soya beans and bean oil. bilK
was sent to Hongkong and thence dispatched Jo
Europe and elsewhere. Cattle were ^nt exclusively
to Manchuria. The exported coal went to v an ous
neighbouring ports, and down the coast as far as
Hongkong. •
(b) Imports
Quantities and Values.--!* the °^.G^£S
of the import trade of Tsingtao a <^^" "^
between goods of Chinese origin and those from e se
where. Those of the former class are marked (On.) in
the tables given below. , . , T „ iTiyt * i s
The most important article teou g^ntK
nnHnn which in its various forms, accounted tor ovei
The following table gives statistics of the different
branches of this trade :
1906-7.
£
801,500
914,800
197,350
94,050
3,250
2^010^950
1909-10.
£
578,300
708,550
188,800
18,700
6,100
1912-13.
£
1,187,600
1,189,650
268,400
32,650
8,900
2^687^200
Cotton-piece goods
Cotton yarn
(Ch.) Shanghai cotton yarn .
Raw cotton • •
(Ch.) Miscellaneous cotton
' goods
Total cotton goods ' .
• i.- v, a ^ndq next in value among the imports,
Pa^^^STthe d *y s of German rule.
WaS aU run naper were valued at £523,150 in 1906-7,
The imports of paper wer 1912-13.
£4 T ^ tode in * etr ° leUm -
D 2 '
36
ECONOMIC CONDITIONS
[lfo.71
In 1906-7 it was imported to a value of £173,900. In
1909-10 the value fell to £134,450, but apart from this
year the trade grew consistently from 1906 to 1913.
In 1912-13 it was valued at £269,650.
The importation of sugar had a similar record, as is
shown by the following figures : 1906-7, £155,100 ;
1909-10, £110,700 ; 1912-13, £229,300.
Aniline dyes and colours held a conspicuous place
in the list of imports. This branch of trade rose in
value from £29,200 in 1906-7 to £129,100 three years
later, and £240,100 in 1912-13.
The trade in metals and metal goods was marked by
great fluctuations between 1902 and 1913. In 1906-7
the value of these imports was £247,300, a figure never
again reached. In 1912-13 the trade had recovered
somewhat from a period of severe depression, and
imports to the value of £187,100 were recorded.
Matches were imported in steadily growing quantities ;
their value in 1906-7 amounted to £86,850, in 1909-10
to £124,250, and in 1912-13 to £228,850.
The trade in cigarettes was developing. Originally
those imported were all of Chinese manufacture, but
other countries began to send supplies during the three
years previous to the war. In 1906-7 the cigarettes
imported were valued at £14,700, and in 1909-10 at
£24,000. , In 1912-13 the value rose to £180,050, of
which £56,150 was accounted for by imports from
sources outside China. ,
In addition to the goods mentioned, Tsingtao im-
ported preserved foods, soya beans, ramie (raw and
manufactured), olive oil, paper fans, shoes, wooden
goods, porcelain, cement, and needles. With, the
exception of the last two, all these were of Chinese
origin.
Plant for railways and mines was imported in 1911-12
to the value of £236,300, and in 1912-13 to the value
of £691,500. None had been imported for some years
before this time.
The total value of the imports into Tsingtao between
1906 and 1913 is given below :
Kiaoohowl
IMPORTS; CUSTOMS
37
1906-7
1907-8
1908-9
1909-10
1910-11
1911-12
1912-13
Of Chinese
Origin.
£
1,040,550
870,750
1,173,050
853,400
788,100 '
2,394,000
1,621,950
From other
Countries.
£
3,078,150,
1,898,250
2,279,000
2,419,800
2,680,650
'3,352,900
4,440,750
Total.
I
4,118,700
2,769,000
3,452,050
3,273,200
3,468,750
5,746,900
6,062,700
rm, nrmchoal source ot tne
Countries of Origm.-^ P r £ itself> and thus
goods discharged at Tsingtao uUl essentia lly of the
I great part of the ^port trade ^ ^ war th
nature of domestic commerce » &d h h
cotton-piece goods and cotton J ar » J Metal goods
Tsingtao were largely ' <rf Br*** J from Germany,
and aniline dyes an ^ c °lo^s c were shipp ed
Matches were of Scandmavian ang ^ {rom us
from Germany. Sugar was g upP . rtant .
sources, of which Java ^ % Indi es, Borneo,
Petroleum came from the Vuic
and the United States.
( C )^:^ was entirely
At first the German ^f^hinese Maritime
excluded from ^^ew^^ngement came into
Customs, but in 1906 a new ^ F Zone
force whereby ^Jfffi reluof to**™*
(which was at the sam rding to the °g\*
dimensions) paid duty Comm issioner *™f ^
Chinese tariff. -L^e kau> { assistants were u
and the more important d Mub &g me mbers of the
Germans, but were to be regar^ r d that
90 ner cent, of tne cu&t . -, t Germany. *- ae UUJ .
Protectorate should be V^^Jgement was to
of the Germans in ^ m t i Protectorate and the
facilitate trade between
interior.
3S ECONOMIC CONDITIONS [*o.n
(d) Commercial Treaties
The political aspects of the Kiaochow Convention
have been treated in Part II of this Handbook, and
tne railway and mining concessions embodied in the
agreement have been described above. The only
clause calling for notice here is the following : ' If at
any time the Chinese shall foi-m schemes for the
development of Shantung, for the execution of which
it is necessary to obtain foreign capital, the Chinese
government or whatever Chinese may be interested
a™ i- m + * G fi [ st 11 lns n tanc e apply to German capitalists.
Application shall also be made to German manufac-
turers lor the necessary machinery and materials
•£mr % + ™ anufacturer s of any other Power are
X, ?a r ? ° U ! d Germa n capitalists or manufac-
turers decline to take up the business, the Chinese shall
^/n 0l ? tain mone y and materials from
sources of other nationality than German.'
^Q^n G 2 I c °ncluded between China and Japan in
Prnfp,? ga ^- ng ^f man y' s ri S hts and claims, in the
ized in ^pTrtlT P rovinc e of Shantung is summar-
(D) FINANCE
(1) Public Finance
Ppr™ reVehUe T derived from the Protectorate by the
™ ™ al -" ayS Utter1 ^ Adequate to defray the
expenses of administration, and had to be supplemented
a L *7nn n nnn su ^ d ^ which varied between £400,000
d^ll^'- lu T n e budget for Kia ochow was little
fnZ It f thG German Rei ^stag, and there is no
aoubt that money not accounted for in the usual
manner was spent on defences.
The revenue and expenditure in 1901 were as follows :
Revenue.
Land sales
Direct taxes
Indirect taxes
State subsidy
Total
£
5,000
2,500
7,500
537,500
552,500
Expenditure.
Ordinary .
Extraordinary
£
219,181
333,319
552,500
Ki *o,*ow] TREATIES; FINANCE 39
For several subsequent years the budgets showed no
new features. The returns from sales of land _ and
taxation increased but slightly, and m 1905 the subsidy
amounted to £733,000, its highest figure . > , . '-
In 1906 the new arrangement with tn^uiinese
Government regarding the customs (see p 37) led to an
increase in the sums derived from indirect taxes. The
annual statement for that year was as follows :
Revenue
Land sales . " •
Direct taxes .
Indirect taxes
Share of Chinese
Maritime Customs
State subsidy
Total
Expenditure.
£
3,000
5,000
31,900
12,500
657,500
709^900
Ordinary
Extraordinary
£ .
338,263
371,637
709,900
.■ Subsequently^ ^^^mW^^
to increase and the > amount <^ ^& in 1908 -9,
A new item on ^% reV ^ e /Xm-repairing yard and
namely the profits from ^ e . s X r ^r to £71,950.
dry dock, yte^™^^^SLmto* Pro-
In 1909-10 some £228,25^0 ^as drawn £40 6,500.
r?^'ir^ev^S r io^ reached the
amounted to £47 W^^^oeeded the subsidy
t^^^™^***- £47u5 ° and
£ Thf toTS^vied by the Germans were on
landed property and^ itstaan ^ ^ f Qr Ucences
Indirect taxation ^f^Tr petroleum, and to
to deal in f^^fS^he pSrt dues were, also
carry on various ^rie^ 1 P fin ^^
included under ^£ heaam was £ eavy , as the German
m f tS ' IZeLo^mZLto live in the territory
S^ Se^rtfattractive to vessels. . , - , ,
40
ECONOMIC CONDITIONS
[so. n
(2) Currency
™^! hi V h , e P ^ otecfcor ate.the German currency of
iWfl rl pf ^ m f S 7 as in use ' German P^er money
issued by the Deutsch-Asiatische Bank was also in use.
Jf T ^tung trade, the Chinese currency was
?2Sr, C ^ency reform, and the adoption of
vn^t T ^tem instead of the local systems now in
hl g ?t ^ ave . loi }g been promised, but they are retarded
tiL nf f h 0Y ] nci f authorities, to whom the manipula-
thehit ^I^Frency is often profitable, and by
The Cht' WhlCh benefit b ^ ^nations in exchange.
th7t fl pl v ^ rencv con ^ts, in the first place, of
manvllnff "? ^ / , Coin but a wei ght. There are
TovIhZJ adS ' and * he banks alwa y« ^ke a charge
tanoP t?^^? sor V nt ° another. Next in impor-
leTaTtenS" d °Ti? r ' which ^ >a coin, but is nowhere
feed in f 1 S 6 7 alue of the silver dollar is not
dav aol^f 18 f ^ ° f , silver ' but varies from day to
subsiSv ?f t0 d ^ and and su PP!y- Th ere are also
dolla Ztl er + C T S re P res ^ting fractions of the
that th Ll J Ct *£ a VarYin S rate of exchange, so
one vear tni T 7 ^ W ° rth 110 cente in small coin
therJZ ™ ° nl T 9 \ C 5 ents the v ear after. Finally,
These are S^ • ^ ' the currenc y of the people,
tiao nf , • ng , m 1 r ° lls 0f 100 » of wh ieh 10 go to the
ch^ r fo fi ng - °f LJOO.oaah. The money-changers
the Si nf^r *!™ ble J* Ringing the coins and for
of cash f° 6 f^gbydeductinl, a certain number
fixed o£?l eacb h «ndred. The rite of deduction is
m^v cont a n 7 'i S ° ? th6 tia °' nomina lly 1,000 cash,
S Tlf ? e P l aCe 970 and in mother 980 actual
mS?U lbe /1 nu + inber of coi ns in the tiao also varies from
^stnct to district according to the size and purity of
cath t£ ? Cmmlatl °n ; the better the quality of the
cash the fewer go to the tiao.
hJvfl n0 ,J ° n f ° f the units of the Chinese currency
has a fixed value, whether in relation to other units
r«fl f tern -al standard. Lists showing the current
rates of exchange are issued daily by the banks in the
Kiaochowj
CURRENCY; BANKING
41
chief commercial centres. These lists frequently differ
from one another, according as the several banks are
well or indifferently provided with any particular type
of currency. It is obvious that this uncertainty as to
• the value of money must be a serious obstacle to the
extension of trade.
(3) Banking
Before the war the European banks in Tsingtao were
the Deutsch-Asiatische Bank, the Russo-Asiatic Bank,
and the Hongkong and Shanghai Banking Corpora-
tion—a British concern. Of these the German bank
was much the most important. In 1907 it obtained
from the German Government the privilege of issuing
its own notes of 1, 5, 10, and 20 taels, for which it paid
to the Government 10 per cent, of the average value
of its issue each year. It also opened a new branch,
called the Hypotheken-Bank, for the purpose of
lending money on mortgage : loans were to be granted
only on lands and buildings in the Protectorate or
within the German Consular areas m China, and the
bank was to pay to the Treasury 25 per cent, on the
averaee yearly value of these mortgages. •
SofficiarChinese bank of Shantung the Kuan Yin
HaU had in 'Tsingtao a branch which was at first
managed by the Kieuschun Bank, but subsequently
was made independent.
42
[Ko.71
AUTHORITIES
British Diplomatic and Consular Reports, Annual Series :
Report for the Year 1913 on the Foreign Trade of China.
Bulletin of the Imperial Institute, 1912.
China Tear Book, 1912, 1915, 1916.
Das Deutsche Kiautschaugebiet (Monatschrift fur den Orient).
Vienna, 1904.
Deutsche Kolonialzeitung, 1900-14.
Jahrbuch uber die deutschen Kolonien, 1908-14.
Norddeutsche Allgerneine Zeitung, February 13, 1914.
Statistisches Jahrbuch fur das deutsche Reich.
Btjrrill H. R. and Crist, R. F. Report on Trade Conditions
^ in China (U.S.A. State Documents). Washington, 1906.
Collins, W. M. F. Mineral Enterprise in China. London, 1918.
(jtKotewold, C. Unser Kolonialwesen und seine wirtschaftliche
Bedeutung. Stuttgart, 1911.
Grunfeld, E. Hafen-Kolonien und kolonieahnliche Ver-
__ haltnisse m China, Japan und Korea. Jena, 1913.
Heydt, Von der. Kolonial Handbuch. Berlin, 1912.
Kent, P. K._Railway Enterprise in China. London, 1907.
Kolshor^t, W. Die wirtschaftliche Bedeutung und Entwickelung
des Kiautschougebiet {Deutsche geographische Blatter, 28-9)
Bremen,. 1905.
Meyer, H. Das deutsche Kolonialreich. 2 vols. Leipzig
1909-10.
Morse, H. B. The Trade and Administration of the Chinese
Empire. London, 1908.
Nemry, L/ Le Territoire allemand de Kiaotcheou {Bulletin de la
bociete beige d? Etudes coloniales). Brussels, 1911.
Wage, S. R. Finance in China. Shanghai, 1914.
Weicker, H. Kiautschou. Berlin, 1908.
Maps
A map of the Province of Shantung, on the scale of
l\ 1 '°J°2.' 000 ( G - S - G - s -> No. 1936), has been published by the
War Office (1905). J
WEIHAIWEI
Weihalwell
45
TABLE OF CONTENTS
I. GEOGRAPHY PHYSICAL AND POLITICAL
(1) Position and Frontiers . • . •
(2) Surface, Coast, and Rivers
Surface
Coast . •
Rivers
(3) Climate .
(4) Sanitary Conditions
(5) Race and Language
(6) Population .
II. POLITICAL HISTORY
III. ECONOMIC CONDITIONS
(A) Means of Communication
(1) Internal
(a) Roads . •
(6) Rivers .
g?ftI, a Telegraph S > and Telephones
. (2) External
(a) Ports
Accommodation . • •
Nature and Volume of Trade
Adequacy to Economic Needs
(b) Shipping Lines .
(B) Industby
(1) Labour . •
(2,A frCdu*ofCo mm e KW Valu e
Cereals
Fruits
Ground-nuts
Silk .
Tobacco
(6) Methods of Cultivation
(c) Forestry . •
' \d) Land Tenure .
PAGE
47
47
48
48
48
49
49
49
50
52
52
53
53
53
54
54
54
55
55
55
55
56
56
56
56"
57
46
TABLE OF CONTENTS
(3) Fisheries
(4) Minerals
(5) Manufactures .
(C) Commerce .
(1) Domestic
(2) Foreign
(a) Exports .
(b) Imports .
(D) Finance
(1) Public Finance
(2) Currency
(3) Banking
AUTHORITIES
[No. 71
PAGE
. 57
. 57
. 58
59
59
59
60
61
61
62
Weihaiwei]
47-
I. GEOGKAPHY PHYSICAL AND
POLITICAL
(1) Position and Feontiees
The territory of Weihaiwei was leased to Great
Britain by China by the terms of » 0On 7?SS„^
Julv 1 1898, ' in order to provide Great Britain with
a suitable naval harbour in North China .and ior -the
better protection of British commerce in the neigh-
bouring-seas ... for as long a period as Port Arthur
SJ^ 122° 26' e^longitude. It is bounded
Bay of Weihaiwei, and a bet * land 10 * ng
wide along the entire, coast-hne of the bay ^ in
a British zone of influence, lymg ^
121 ° 40', which covers an area of ,650 squ^ ^
This zone is *™ff,™™° t ]Hili east of Chef oo,
^IX^ZlZ^^e eastern promontory
of Shantung.
(2) Sueface, Coast, and Rivees
Surface
The surface of the territory .consists °« /S
of rugged ^"SCSS^i^ 1 iod ° na, 5
the chief are the f ^«™' a ^ ated , and are watered
^rea^^S -^dlng the greater part of
48
GEOGRAPHY
" [»0.
71
f^r ar ' •£? ? e Mlls are terraced f °r cultivation as
far as possible, but their general appearance is barren.
Coast
W^Ttn 116 h w a len S th of 72 miles. Starting
sandv \l f allow ^tern Inlet the coast is low and
S q a far . as * he base of Long Point, from which
bat? off 11 ° f /° Cky headl ^ds separated by small
Sof fr ng p n -°/- V ^ raWe lan <*in g places. On the
wTdtb wh?f ? am * u Weihaiwei Bay! about 5 miles in
Eat W^t 1S pr ° tected ^y the island of Liu-kung-tao.
ooSTSS fe south-eastern end of the bay the
shallow rLn Way t0 r the flat Sand y levels around the
ends Chao -y an g La goon, where the leased territory
is l^Z^.Tt 1 ^ (l e ' of the zone ^ influence)
bavs W T °* b ? M ieadlands *°* deeply indented
plTces WlUCh ' h ° Wever ' afford good landing-
Rivers
numerous"!^ ™ or , lakeS <* any importance, but
sZLd?™ ntf'T threa ? the Valle y s in ey^ery direction,
season %Z t^° """t" and P ools durin S the rainy
but Li'„ Sn T^PJ^ on ^e mainland is abundant,
apparaS g " ta0 ^ t0 mlj ° n Wells and a *<«bg
(3) Climate
never 6 briW te0f ^Wei is g° od > the summer heat
never being excessive and the winter being cold drv
a pS ^ i o eXhilarat H« The mean temperate S
?x? u ?, f 10 years was 76 -5 E. (24-7° C ) for August
the hottest month, and 30° E. (-1° C.) to FeteW
is from W WaS | 9 1 3 T h6S - The usual rain 7 ^son
winds ar?™ Se P tem t>er inclusive. The prevailing
to At)'ril r " 6 °^ le / S n ° rth - west from November
weihaiweij COAST; CLIMATE; EACE, ETC. 49
(4) Sanitary Conditions
The climate of Weihaiwei is exceptionally healthy.
The diseases which usually prevail in northern China
appear from time to time among the Chinese inhabi-
tants, and also various complaints due to the uncleanly
habits of- the people, but ordinary precautions should
be sufficient to protect foreign residents.
Since the British occupation the cases of cholera in
Weihaiwei have been very few, while dysentery and
diarrhoea are of a mild type. The most unhealthy
months are from June to September.
The sanitary conditions of the town of Weihaiwei
and the neighbouring villages are bad ; but those of
Port Edward and the settlements on the island of
Liu-kung-tao are quite satisfactory.
(5) Pace and Language
The natives are typical Chinese, and their language
is the Shantung dialect. They are on the whole very
uneducated, though most of the villages have locally-
maintained schools. English as well as Chinese is
taught in a school on Liu-kung-tao, and a few of the
natives are educated in the Anglo-Chinese school at
Port Edward.
(6) Population
The census of 1911 showed that the total population
was 147 177 of whom 1*15 were Europeans. Ihere
is no register of births and deaths, but it was estimated
that nt the time of the census there were 998 children
56 days oM oTunder. The density of population is
^T^tSScf Lludes about 330 villages and
towns The town of Weihaiwei, which is under Chinese
iurisdiction, is of the usual type of walled city Its
population is about 4,600, mainly consisting of the
PO T^most?mportanttownisMa-tou orPortEd^rd,
a port about 1| miles to the north of Weihaiwei.
50
GEOGRAPHY
[if 0.71
Under British control it has become a thriving and
sanitary place. It is the seat of government, and has
a good junk anchorage and a pier. The population
(about 4,000) resides on the island of Liu-kung-tao,
where there are two villages. This island is Government
property and no cultivation is permitted. About 20
miles south of Weihaiwei is the district town of Wen-
teng.
II. POLITICAL HISTORY
^No^Wof thisSt t0 be ^^ ^ COnjunction with CMm '
w^r^ 1 W ,t S one of the na ™l bases of the
Northern Fleet (Pei-yang) of China before the Chino-
Japanese War and the islands forming the sea bulwark
pi the bay had been fortified under German auspices
in the modern fashion. In the winter of 1894-5 it was
captured by the Japanese, who continued to occupy it
under Article VIII of the Treaty of Shimonoseki as
a guarantee for the faithful performance of the Treaty
stipulations To counterbalance the action of Russia
in exacting the lease of Port Arthur from the Chinese,
threat Eritamm 1898 demanded the reversionary lease
ot Weihaiwei after Japan should have relinquished
possession. fc .
-By a convention of July 1, 1898, China leased
Weihaiwei and the adjacent waters to Great Britain
lor so long a period as Port Arthur shall remain in the
occupation of Russia'. The territory involved com-
prises the island of Liu-kung-tao and all the islands in
the Bay of Weihaiwei, and a belt of land 10 English
miies^wide along the coast-line of the bay. Within the
leased territory Great Britain has sole jurisdiction
(except as regards the town of Weihaiwei), and outside
it acquired the right to erect fortifications, station
troops, or take any other defensive measures at any
weihaiwei] POLITICAL HISTORY 51
points on or near the coast of the region east of 120° 40'
east longitude, and also to acquire sites for water-suppby,
communications, and hospitals. Withmthis exterior
zone Chinese administration continued but ** tr °°P s
other than British or Chinese were allowed to enter
Lside the walled town of Wfhaiwei.the jurisdiction of
Chinese officials continued, * except so far as may be
i C nc"nsTstent with naval and military reogjaa^tafor
the defence of the territory leased . Chinese vessels
of war, 'whether neutral or' otherwise, shall retain the
ties of Shantung, altnouguM
were numerous. ^^^"^ a „
and good sense of the Chinese omc ^
trrSVs^ g — to the Chinese sense
of justice.
s 2
52
[»o.n
III. ECONOMIC CONDITIONS
(A) MEANS OF COMMUNICATION
(1) Internal
(a) Roads
Port Edward, the seat of government, and the town
of Weihaiwei are connected by roads with the five
market towns, Yangting, Fenglin, Chiaotow, Tsao-miao,
and Kushanhow, and with the principal villages. A
road runs on from Yangting across the western boun- ,
dary to Chefoo, 56 miles from Weihaiwei. Since the
occupation of the territory, most of the expenditure
on public works has been devoted to roadmaking,
which went forward energetically during the first few
years but has since remained stationary, repairs only
having been undertaken. Mr. R. F. Johnston 1 points
out that the owners of arable land do not ask for
compensation when roads are made across their
property. They are content with the increased price
of agricultural produce, and the consequent rise in
the - value of land, resulting from the improvement
of communications. They have even taken to road-
making at their own initiative and expense. They have
also petitioned the Government of Weihaiwei to urge
the Governor of the Chinese province of Shantung to
extend the Weihaiwei road system into Chinese
territory, so as to allow of cart traffic between Weihai-
wei and the Chinese district cities of Jungcheng,
Wenteng, and Ninghai. •
(&) Rivers
There are no rivers of any size in the territory,
mainly because the rainfall is so scanty.
1 Lion and Dragon in Northern China, p. 94,
weihaiwei] ROADS; POSTS, ETC.; PORTS 53
(c) Railways
There are no railways in Weihaiwei. Lord Salisbury
as Foreign Minister wrote a dispatch to Sir .brant
Lascelles?. the British Ambassador in Berlin, dated
April 2, 1898, in explanation of Great Britain s action
in occupying Weihaiwei, 'since it is not posjble to
make Weihaiwei a commercial port .and it would never
be worth while to connect it with the interior by
railway. ... If desired, a formal undertaking .on tfoa
point will be given.' It does not appear, however, that
any such undertaking has been given.
(d) Posts, Telegraphs, and Telephones
, VSZS^I^^ by^th/chinese postal
^Eastern Telegraph Company has a cable con-
neSg wSSwei wfth'chef oo, ^™ annual
subsidy of £4,000 for maintaining the semce
Telephone systems are installed on the isiana (
Liu-kung-tao and in Port Edward.
(2) External
(a) Ports
rra,„ T, Q r>.nnr of Weihaiwei is
AccommodaUon-The £ a ™™. east its northern
formed by a B^f^^^^^ The harbour
and southern points being 1, ^1« £P a of Liu .
is ice-free throughout rthe ^ a ™ it p0ssib le to enter
either from north-eas t or sou ters of a ^le
wide and is always used oy mi i es wide,
draught. The eastern prance is
and is navigable ^ ^Xwest corner of the island
£^W. ta?S^ ** - inland the water
54
ECONOMIC CONDITIONS
[NO.
71
shoals rapidly. All cargo work has hitherto had to be
done by means of lighters or other small vessels which
can be beached. In 1916, however, the Wu Kou pier
for junks was begun Its estimated cost was 40,000
dollars, and it was expected to be completed by 1918.
In the north of the bay is Weigal cove, with a landing-
pier for boats ; and south of this is Narcissus Bay
(general depth 18 ft.) in which is Port Edward, with
a landing-pier for steamers and a stone pier near Flag-
staff Point. The naval station is on the island of
Liu-kung-tao, but trade and shipping business are con-
centrated at Port Edward.
Nature, and Volume of Trade. — In the decade from
1904 to 1914 the number of steamers visiting Weihaiwei
rose from 315 to 672, and the tonnage from 317,595 to
631,578. In 1914 2,351 junks entered and cleared from
the port. Returns of the nationality of steamers in.
1914 are not available, but the figures for 1915 were 433
British, 139 Chinese, and 85 Japanese, out of a total
of 668. -
Adequacy to Economic Needs. — The absence of rail-
way connexion with the hinterland and of facilities for
repairing ships and for loading and unloading cargo,
together with the situation of Weihaiwei between
Chefoo and Tsingtao, make it pnlikely that the trade
of the port will develop to any great extent. The
blockade of Tsingtao in 1914 resulted in several of
the coast towns turning to Weihaiwei for their supplies
of kerosene oil, matches, and cotton yarn, but this
was of course merely temporary. The trade of the port,
however, has already prospered and the revenue has
advanced more than could have been expected.
(6) Shipping Lines
In 1902 a contract was made with the Indo-China
Steam Navigation Company, by which, in consideration
of a Government subsidy. amounting to £1,000 per
annum, their vessels call at Weihaiwei instead of
Chefoo on the voyage between Shanghai and Tientsin.
British steamship companies provide tonnage
weihaiwei] PORTS; SHIPPING; INDUSTRY 55
between Weihaiwei and Hongkong at low rates. The
British firm of Butterfield & Swire have inaugurated
a system by' which shippers obtain a deferred rebate
if they confine their future custom to certain specified
British lines.
(B) INDUSTRY
(1) Labour
The supply of labour is sufficient, and the conditions
^There is normally a certain amount of temporary
emotion to Manchuria and South Aj^j^
workers return with large earnings ^ " ^"^
permanent emigration of the smaller land; h ^ ers to
Chihli and Manchuria. There is no immigration.
(2) Agriculture
(a) Products of Commercial Value
P t«l* are fcf^^'fflt
value. The oil obteine « <&£»*, and olive
Europe for the ™uufaoture oi marg ^^
oil, and also %^f^%Z isusedfor <*" tWo » d
ing purposes. The residual e ^^ ^
Md „titosT;ound-nn e tS and oil Exported from 1912
Tml 1 ngure g s for values are not avada M :
1 niQ 1Q14 1915. LJIO.
iqi9 191a. i»i*.
Unahelled nuts .3,780 »,«« • 2 „; 3 72 173,034
Kernels . • 12j>.«j. '?°;°? 9 I0 ,788 26,666 13,067
0,1 . , picu, wa, J**« by treaty a, .,»va..nt to l«t lb.
56
ECONOMIC CONDITIONS
[No. 71
The striking increase in 1915 was due to the fact
f ™f r .° l ul ? d - nuts which usually go to Tsingtao arrived
at Weihaiwei. A larger percentage of oil can be
obtained in Europe when the kernels alone are
exported than when the shelling has to be done after
arrival A further advantage in shipping kernels or
oil rather than whole nuts is the saving in freight.
,, ™;~ fe dk-wormsfeed on the oak sc rub common on
the Weihaiwei hills, and thorn-fed silk-worms, which
produce silk of better quality, are reared at Lai Tang,
Uung Chu, and Chowtsun. The raw silk is exported
to spinners at Chefoo. Mulberries might with advan-
tage be grown. &
™ T i m a o C ^~"^ n e ?P erime ntal tobacco farm was started
Si V^i he British " American Tobacco Company
at Menchiachuang, 20 miles from Port Edward. Leaf
o± a good quality has been produced, but not in suffi-
cient quantity for a large export.
(b) Methods of Cultivation
mS* Clli T 6 m f th ° d ° f cult ^ation is intensive, as
much care being lavished on each individual plant as
diw! f ga * d ^ er WOuld ex P end u P° n aplant
destined for exhibition. The Chinaman is moreover
L™t m T ^ ™ - the a PP licat ion of all kinds of
manure Little irrigation is possible, on account of
the want of water.
(c) Forestry
™I he * ba / e an 5 treeless appearance which Weihaiwei
Presents from the sea has caused it to be described as
a colder Aden '. Where trees are to be seen, they
are generally yews or cypresses round the family
graveyards the natives in their search for fuel being
accustomed to scrape the ground bare even of grass.
Keattorestation has been begun on a large scale by
the British Government, especially on the island of
i^iu-kung-tao. On the mainland it is not easy to obtain
ground for afforestation, as the natives use it for scrub
weihaiwei] AGRICULTURE ; FORESTRY, ETC. 57
oaks. An expert was brought from Hongkong, and
under his superintendence a number of firs, yews,
acacias, willows, and Lombardy poplars have been
planted, but caterpillars and other pests have wrought
much havoc. Shade trees are badly needed to protect
the soil. , ' -
(d) Land Tenure
Weihaiwei is a land of peasant- proprietors, but the
proprietorship is vested in the family or clan rather
than in the individual. Each family in' the group con-
stituting the village has rights Over a common tract
of pasture land. No individual can sell his land, unless
the deed of sale bears the consent of all the other
members of the clan. To this system is due the absence
of pauperism and the orderliness of the population,
since nearly every one has a stake in the land and
nothing to gain from revolution. Absolute sales of
land have been growing more common in Weihaiwei
as the inhabitants have begun to feel more desire and
to find more opportunities for careers other than
agricultural. Government deed forms are distributed
to sellers and purchasers of land by the district ] head-
man, and these deeds have no legal ya hdi ty till they
are registered. The price of land m.1912 was £17 an
acre, less than half what it was a few years ago.
(3) FISHERIES
The fisheries are W^^^J^l^^X
artirlP of exoort No recent figures are avaiiaoie,
butted is^atly large trade *****£%£
by junks between Weihaiwei an d s0 ^% 8 °^
June to August ; it was said to be pronwui ,
not developed. .
■"" (4) Minerals
■rtuaii found in alluvial depo* and afo infc
disintegrated pyrittc £>£,£££ Srv of
quartz, which is fairly commou
58
ECONOMIC CONDITIONS
[No.
71
Weihaiwei. Gold-mining is carried on near the villages
of Peihukow, Kushanhow, and Pitsu, in the sands of the
Fungfou River.
The Weihaiwei Gold Mining Company was formed
in 1902, on a favourable report by experts ; the com-
pany was reconstructed later, but has now ceased
working. In 1905 it employed 400 men. The Com-
missioner of Weihaiwei wished that gold-mining should
be carried on more extensively, in combination with
similar operations in the British sphere of influence
e ? St i°| f i 21 ° 4 °' east longitude, and proposed that he
should draw up regulations for its conduct in conjunc-
tion with the Chinese Governor of Shantung. The
Germans opposed this on the ground of a previous
concession to them of the sole mining rights within
a radius of 250 li (1 mile = about 2J li) from Chefoo.
Ihe preposterous nature of this claim will be realized
when it is remembered that Weihaiwei itself is only
140 h distant from Chefoo.
Aletter to the Irish Times in December 1900, quoted
by Mr. C. E. Bruce-Mitford, 1 says : ' a more liberal
delimitation, say 15 miles farther inland, would have
placed the Government in possession of what is likely
to be one of the most prolific and easiest worked coal
mines in Asia. AH over Weihaiwei iron is to be found
in great abundance. Nickel is apparently in lesser
quantities, but copper and tin are very plentiful.
Altogether the mining prospects of the country are
inviting.' Little, it seems, has been done to in-
vestigate any of these prospects more fully. Thirty-
four prospecting licences were granted in 1903, 39 in
1904, and 14 in 1905, but since then none have been
issued.
Sulphur springs are common.
(5) Manufactures
Little in the way of manufacture exists. There has
lately been started a mill for expressing oil from
1 The Territory of Weihaiwei, p. 49.
we^aiwei] MINERALS; MANUFACTURES, ETC. 59
imported soya beans, and the undertaking is said to '
have made large profits. Silk manufacture is carried
on in a primitive way. Before the war an attempt was
made to start an industry in weaving ha ir-nets from
hair imported from Germany. The trade m these
nets was reported to be growing in 1914, but lack of
raw material has suspended the enterprise.
(C) COMMERCE
(1) Domestic
Fairs are held at most of the market centres, and also
at Tanghohsi near Wenchuantang, the he^ajters
of the southern division of Weihaiwei, and at Peikou
near the southern Chinese border.
(2) Foreign
. ' ■ (a) Exports
rntasTeiS i?X W - ™-~K
available. The Commissioner ^ r ^ had
pointed out that the fact that many new buUdmg ^
been erected during the y ear ^'^ n a W ere expect-
the Chinese merchants ^W£** ^ rep ort for
ing further expansion of then traae. r
19 S 15 stated that 479,458 P^^^Snn^ raw
by steamer. The chief exports are grou d _
silk, salt, salt fish and eggs. Figures lor g
nut export have been given above (p. M>h
(b) Imports . '
Few general figures are ^^/^ef packages
trade. In 1915 there were m all 17 7,1 V
imported. The chief ^ tlcl fXrptece"goods, paper,
oil, sugar, cotton yarns, cotton pie eg Before
indigo,timber, coal, Chinese ^^f^smg, and
the war the import of foreign flour was in b^ ^
91,270 bags, each weighing 50 lb.,
60
ECONOMIC CONDITIONS
[»o.71
1913. By 1916, however, on account of the rise in the
price of foreign flour, the import had dropped to 405
hags. The Chinese are using instead native milled
flour, of which 39,132 bags were imported in 1916.
. The two best lamp oils imported are those of the
Standard Oil Company and the Asiatic Petroleum
Company. The following table shows the amounts
imported from 1914 to 1916 :.
Standard Oil Co.
Asiatic Petroleum Co.
1914.
Gallons.
329,600
18,400
1915.
Gallons.
297,600
36,800
1916.
Gallons.
85,392
34,000
. Japanese oil used to be imported from Dairen, but
it was inferior in quality and importation has ceased.
Owing to the rise in price, the importation of other
foreign oil has diminished of late, and a local factory
has been opened (see p. 12).
There is a transit trade in ginseng, an aromatic root
much prized in China for medicinal purposes. The
annual value of this trade is between 600,000 and
700,000 dollars.
(D) FINANCE
{I) Public Finance
The revenue of Weihaiwei was at first very small,
and had to be supplemented by a large grant from
Imperial funds. Of late years, however, the revenue
has been rising and the grant in consequence diminish-
ing. The following table shows the total receipts,
expenditure, and grant for the period from 1910-11
to 1916-17 :
Year.
Receipts.
Expenditure.
Grant
£
£
£
1910-11 .
7,692
14,805
5,000
1911-12 .
7,623
15,679
6,000
1912-13 .
8,124
14,919
6,000
1913-14 .
9,573
17,045
8,300
1914-15 ,
11,197
15,127 .,-.
5,000
1915-16 .
11/807
.15,921 .
3,500
1916-17 .
12,955
14,220 "
1,420
Weihaiwei]
IMPORTS; FINANCE
61
The main sources of revenue are land-tax, road-tax,
land and junk registration fees, a monopoly in wine,
and the rents of Government property. The land-tax
levied on Europeans is \ per cent, on the value of the
land they purchase. It brings in about £2,400. Great
Britain has given a pledge to China that Custom dues
shall not be imposed.
(2) Currency
The Mexican dollar is the official unit of currency
in Weihaiwei. Its value is 2s. Ofd. Chinese currencies
of varying values are also in circulation, but as there
is only a limited amount of trade and no banking,
details of values and rates are not available.
(3) Banking
Cornabe, Eckford & Co., whose head-quarters are
at Dairen in Manchuria, and Lavers & Clark, both
firms of general merchants, act as banking agents in
Weihaiwei.
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